Five years ago, only CEOs had golden parachutes. Today, 21% of companies offer newly hired senior level executives golden parachutes in the event things dont work out. Indeed, Exec-U-Net, the Norwalk, Conn., executive job and online networking organization, says a golden severance package is now the most commonly negotiated contract item among senior executives. The typical length: seven-and-one-half months.
Executives know they cant get a guarantee of job security, so they are negotiating for financial security instead, says David Opton, executive director of Exec-U-Net.