Execs can have bigger voids due to gardening leave, non competes so it looks OK. But honestly because you can (in theory) lie on your CV it ain’t worth worrying about. So the scenario where you die because you run out of money and need a job because of a gap can be remediated that way. Change the dates or something.
Yes, means you're still paid by the company but have essentially no duties. One way of making their inside knowledge somewhat stale before they officially leave.