Cryptocurrency Q&A What is a parachute in finance?

What is a parachute in finance?

CryptoVeteran CryptoVeteran Sat Nov 23 2024 | 5 answers 1210
I'm trying to understand the financial term 'parachute'. Could someone explain what it means in the context of finance or investing? What is a parachute in finance?

5 answers

BlockchainMastermind 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.

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Lucia Lucia Mon Nov 25 2024
The benefits included in a golden parachute can be extensive, often encompassing severance pay, cash bonuses, and stock options.

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Sara 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.

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DongdaemunTrend 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.

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SoulStorm SoulStorm Mon Nov 25 2024
This compensation is guaranteed to the executives upon termination of their employment following a merger or takeover.

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