Eli5: How do CEOs from failing companies bail out with golden parachutes? Where does the money come from?

Question

Eli5: How do CEOs from failing companies bail out with golden parachutes? Where does the money come from?

In: Economics

Answer 1

CEOs typically negotiate a contract. Employees/workers could do the same but would need to form a union to buck the status quo. The irony is everyone wants safeguards in employment but resists the bargaining power a union offers in lieu of assuming as an individual they can do better on their own.