Golden Parachute

What Does Golden Parachute Mean?
Lucrative benefits given to top executives in the event that a company is taken over by another firm, resulting in the loss of their job. Benefits include items such as stock options, bonuses, severance pay, etc.

Investopedia explains Golden Parachute
A golden parachute can be used as a measure to discourage an unwanted takeover attempt.

Filed Under: Buzz Words, Options

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