Compensation paid to top management in the event of a takeover is called a:
A)poison pill.
B)golden parachute.
C)self-tender.
D)buyout.

Question

Quizplus · Accepted Answer

Compensation paid to top management in the event of a takeover is called a golden parachute, which provides financial security to executives who may lose their jobs in the event of a takeover or merger. A poison pill is a defensive strategy used by a target company to deter hostile takeovers by making the company less attractive to the acquirer. A self-tender is a tender offer made by a company to buy back its own shares. A buyout is the acquisition of a company or a controlling interest in a company by a private equity firm or another company.

Compensation Paid to Top Management in the Event of a Takeover