If the bidder in a hostile takeover faces target management resistance, as an alternative to either bidding higher or terminating the tender offer process, bidders sometimes offer target management compensation to end its resistance.This compensation is called:

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A golden parachute refers to substantial benefits given to top executives if the company is taken over by another firm, and the executives lose their jobs as a result. In the context of a hostile takeover, offering such compensation to target management can be a strategy to reduce their resistance to the takeover.

If the Bidder in a Hostile Takeover Faces Target Management