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InvestHub.com's
Finance Dictionary and Glossary of Investment Terms

golden parachute  

Definition 1.

A clause in an executive's employment contract specifying that he/she will receive large benefits in the event that the company is acquired and the executive's employment is terminated. These benefits can take the form of severance pay, a bonus, stock options, or a combination thereof.
 

Definition 2.

Lucrative benefits given to top executives in the event that a company is taken over by another firm, resulting in the loss of their job. Benefits include items such as stock options, bonuses, severance pay, etc.
 

Definition 3.

Compensation paid to top-level management by a target firm if a takeover occurs.
 
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