I'm trying to understand the financial term 'parachute'. Could someone explain what it means in the context of finance or investing?
5 answers
BlockchainMastermind
Mon Nov 25 2024
The purpose of a golden parachute is to incentivize executives to support and approve M&A deals, as they are assured of a substantial financial cushion.
Lucia
Mon Nov 25 2024
The benefits included in a golden parachute can be extensive, often encompassing severance pay, cash bonuses, and stock options.
Sara
Mon Nov 25 2024
In the context of mergers and acquisitions (M&A), a golden parachute is a significant financial package offered to company executives.
DongdaemunTrend
Mon Nov 25 2024
These perks are designed to protect executives from potential financial losses that may arise from the transition and uncertainty following a merger or acquisition.
SoulStorm
Mon Nov 25 2024
This compensation is guaranteed to the executives upon termination of their employment following a merger or takeover.