The term "golden parachute" refers to
A) a clause requiring that huge dividend payments be made upon takeover.
B) financial inducements offered by a threatened firm to stop a hostile suitor from acquiring it.
C) managers of a firm involved in a hostile takeover approaching a third party about making the acquisition.
D) pay given to executives fired because of a takeover.

Question

Quizplus · Accepted Answer

Golden parachutes are substantial benefits guaranteed to company executives in the event they are terminated following a takeover. This can include severance pay, stock options, and bonuses, designed to provide financial security to the executives after their departure from the company.

The Term "Golden Parachute" Refers to