What is POFP?

Why do lawyers refer to long documents as briefs and
18-year olds as infants? Why do they use so much Latin when so few of their
clients are Ancient Romans? Is it a conspiracy?


Party of the First Part has the answers! Check out the Website for the
Legalese Hall of Shame; a glossary of legal words linked to Adam Freedman's
columns; tips on writing legal documents in plain English; and more!



Sunday, October 5, 2008

Word of the Week

Golden Parachute

An "excessive" severance payment to an executive. Recent coverage of the Economic Stabilization Act of 2008 (aka the "bailout bill") mentioned that Congress would restrict the "golden parachutes" available to companies that sold troubled assets to the Treasury. Many assumed that the media were just speaking informally, but in fact the "Golden Parachute Rule" is enshrined in the Tax Code -- imposing a 20% excise tax (on top of income tax) on any severance payment that is more than 300% of the executive's recent average annual pay.