Friday, September 25, 2009

Question # 142

The first known use of the term X dates back to when creditors sought to oust Howard Hughes from control of TWA airlines. The creditors provided Charles C. Tillinghast Jr. an employment contract with protection against the almost definite job loss Tillinghast would have faced if famed aviator Howard Hughes had successfully maintained control of TWA. The use of the term has significantly increased in 2008 due to the global economic recession, especially being used by news media and in the 2008 Presidential Debates. X is defined as a clause in an executive employment contract that provides the executive with a lucrative severance package in the event of their termination. May include a continuation of salary, bonus and/or certain benefits and perquisites, as well as accelerated vesting of stock options.

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