Business ethics and the decision to adopt golden parachute contracts: Empirical evidence of concern for all stakeholders
Journal of Business Ethics 86 (1):65 - 79 (2009)
| Abstract | Golden parachutes are often viewed as a form of excessive compensation because they provide senior management with substantial payouts following an acquisition while other stakeholders are subjected to layoffs, disrupted business relationships and other negative externalities. Using a sample of S&P 500 firms, an economic and ethical justification for this type of contract is given. Golden parachutes ensure effective corporate governance that, in turn, preserve the firm's value for all stakeholders. Boards of directors enter into parachute agreements to protect recently hired CEOs' human capital during periods of financial uncertainty and, thus, potential takeover activity. From an ethics viewpoint, golden parachutes are valuable to all stakeholders because they encourage merger or acquisition in lieu of bankruptcy. | |||||||||
| Keywords | No keywords specified (fix it) | |||||||||
| Categories | ||||||||||
| Options |
|
|||||||||
Download options| PhilPapers Archive |
Upload a copy of this paper Check publisher's policy on self-archival Papers currently archived: 5,672 |
| External links |
 |
| Through your library | Configure |
Similar books and articlesJ. Garcia De Madariaga & C. Valor (2007). Stakeholders Management Systems: Empirical Insights From Relationship Marketing and Market Orientation Perspectives. Journal of Business Ethics 71 (4):425 - 439.
J. Garcia de Madariaga & C. Valor (2007). Stakeholders Management Systems: Empirical Insights From Relationship Marketing and Market Orientation Perspectives. Journal of Business Ethics 71 (4).
Humphry Hung (2011). Directors' Roles in Corporate Social Responsibility: A Stakeholder Perspective. Journal of Business Ethics 103 (3):385-402.
Mel Perel (2003). An Ethical Perspective on CEO Compensation. Journal of Business Ethics 48 (4):381-391.
Jerry D. Goodstein & Andrew C. Wicks (2007). Corporate and Stakeholder Responsibility: Making Business Ethics a Two-Way Conversation. Business Ethics Quarterly 17 (3):375-398.
Nick Collett (2010). Partial Utilitarianism as a Suggested Ethical Framework for Evaluating Corporate Mergers and Acquisitions. Business Ethics 19 (4):363-378.
Chong W. Kim, Margie McInerney & Andrew Sikula (2004). A Model of Reasoned Responses: Use of the Golden Mean and Implications for Management Practice. Journal of Business Ethics 51 (4):387-395.
Scott L. Newbert (2007). Treating Stakeholders Fairly. Business and Professional Ethics Journal 26 (1/4):55-70.
Ken Hanly (1992). Hostile Takeovers and Methods of Defense: A Stakeholder Analysis. Journal of Business Ethics 11 (12):895 - 913.
Analytics
Monthly downloads |
Added to index2009-01-28Total downloads6 ( #145,547 of 549,065 )Recent downloads (6 months)1 ( #63,185 of 549,065 )How can I increase my downloads? |
My notes
Discussion
