Answer
May 31, 2018 - 01:04 PM
To get the the point, a Sweetheart Deal or Sweetheart Contract, is an abnormally favorable contractual arrangement.
A particularly lucrative golden parachute could be an example of a type of sweetheart deal, where it is not in the best interests of the stockholders.
A prime example of a sweetheart deal would be one that belongs to popular singer Taylor Swift. As a top musical artist at Big Machine Records where her father is the majority share holder, she has an abnormal finacial and/or
contractual advantage almost unheard of in the music industry. Most artist sign over 70% or more of their music rights in exchange for cash up front or (in pocket). Almost every music deal made is in favor of the record label.
A particularly lucrative golden parachute could be an example of a type of sweetheart deal, where it is not in the best interests of the stockholders.
A prime example of a sweetheart deal would be one that belongs to popular singer Taylor Swift. As a top musical artist at Big Machine Records where her father is the majority share holder, she has an abnormal finacial and/or
contractual advantage almost unheard of in the music industry. Most artist sign over 70% or more of their music rights in exchange for cash up front or (in pocket). Almost every music deal made is in favor of the record label.
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