After the recent merger of ABC and XYZ Airlines,the former CFO of XYZ Airlines,John,lost his employment in the newly merged airline.Which compensation agreement extends pay and benefits for John?
A)discount stock option plans
B)incentive stock options
C)phantom stock
D)golden parachutes

Question

Quizplus · Accepted Answer

Golden parachutes are compensation agreements that offer executives significant pay and benefits in the event of a merger or acquisition resulting in job loss. As John lost his employment due to the merger, a golden parachute clause in his contract would provide him with the desired compensation. A, B, and C are not relevant to John's situation.

After the Recent Merger of ABC and XYZ Airlines,the Former