A Parachute Payment is a payment or benefit triggered by a change in control of a company, often tied to executive employment agreements and sometimes subject to special tax rules (e.g., U.S. golden parachute excise tax considerations under Section 280G). In M&A, Parachute Payment calculations can affect deal economics and closing deliverables, and Parachute Payment mitigation strategies may include cutbacks, shareholder approval, or restructuring compensation.
Ryan RobertsStartup Lawyer
Ryan Roberts is a startup lawyer with more than two decades of experience advising on venture financings and M&A transactions totaling more than $1 billion. He is the author of the Amazon bestselling startup law book Acceleration.
