Coming Soon: New Article on Golden Parachute Payments

What is a Golden Parachute?

A golden parachute is a severance agreement that is triggered by a change in control of a company. These agreements are typically designed to protect executives from financial harm if they are terminated as a result of a merger or acquisition.

Section 280G of the Internal Revenue Code

Section 280G of the Internal Revenue Code imposes a 20% excise tax on golden parachute payments that are deemed to be "excessive." The IRS has issued regulations that provide guidance on what constitutes an excessive golden parachute payment. In general, a payment is considered to be excessive if it exceeds three times the executive's annual compensation.

The Coming Article

The upcoming article will provide a comprehensive overview of Section 280G and its implications for executives and corporations. The article will also discuss recent trends in golden parachute litigation and provide guidance on how to avoid the excise tax.

Stay tuned for the full article!

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