An extremely lucrative severance package that is guaranteed to a firm's senior managers in the event that the firm is taken over and the managers are let go is called a:
A)golden parachute.
B)white knight.
C)poison pill.
D)classified board.
E)recapitalization.

Question

Quizplus · Accepted Answer

A golden parachute is specifically designed to benefit the senior executives of a company in the event of a takeover or merger. It includes a lucrative severance package, stock options, bonuses, and other incentives, which are all designed to help the executives weather the transition period and find new employment opportunities. The purpose of a golden parachute is to ensure that the executives are well-compensated for their loyalty and contributions to the company, even if they are no longer needed under the new management.

An Extremely Lucrative Severance Package That Is Guaranteed to a Firm's