Golden parachute
Golden parachute is a payment and other benefits made to executives who are forced out when a merger takes place.
Definitions
According to Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition),
- Golden parachute. A payment made to executives who are forced out when a merger takes place.
According to Fundamentals of Financial Management by Eugene F. Brigham and Joel F. Houston (15th edition),
- Golden parachutes. Large payments made to the managers of a target firm if it is acquired.
Related concepts
- Financial management. A combination of enterprise efforts undertaken in order to procure and utilize monetary resources of the enterprise.
