In a second Russian-language article on the topic of "golden parachutes," Squire Sanders lawyers Yurkina Elena and Golovanova Irina review the need to approve compensation packages for top managers of companies. Against the background of a global crisis the matter of "golden parachute" payments became very urgent. The article investigates the nature of "golden parachutes", i.e. agreements of severance packages for top managers in case of early termination of their employment contracts. The authors focus on theoretical matters of classification of such compensation agreements. The primary question addressed in this article is whether such agreements are governed by civil law or labor law. The authors discuss this topic and suggest their solution for this matter.
The article is published with permission of Aktsionerny vestnik.