What is a perk that protects executives if their firm is acquired or if they must leave the company?

A golden parachute contract is a benefit that provides executives with significant financial compensation or benefits in the event of an acquisition or if they are terminated as a result of mergers or changes in ownership. This type of agreement is designed to incentivize executives to stay with the company through a transition and to ensure that they are financially protected in a situation where their job security may be compromised. The term "golden parachute" typically refers to both substantial severance pay and other benefits that kick in when an executive loses their position due to a merger, acquisition, or takeover, making it a clear protective mechanism for executives in turbulent corporate environments.

Retention bonuses, severance pay, and employment guarantees serve different purposes and do not specifically address the scenario of acquisition or involuntary termination due to such corporate changes in the same way as a golden parachute. While retention bonuses are intended to keep talent during a transitional phase, they do not provide the same level of protection against immediate loss of employment. Severance pay may offer compensation upon termination but lacks the additional layers of protection or benefits typically associated with golden parachutes. An employment guarantee is not a common practice for executives in these situations. Thus, the golden parachute stands out as the focused mechanism for protecting executives during corporate