Which concept is associated with compensation that protects employees during company acquisitions?

The concept associated with compensation that protects employees during company acquisitions is the golden parachute contract. A golden parachute is a financial agreement between a company and top executives that provides them with substantial benefits if they are terminated as a result of a merger or acquisition. This can include cash severance, stock options, and other financial incentives.

The purpose of a golden parachute is to ensure that executives are compensated fairly even if the company undergoes significant changes, such as being sold or merged with another entity. This helps to alleviate fears of job loss during uncertain times and provides a cushion for employees who may be at risk of losing their positions as a result of the acquisition.

Understanding this concept is important in the context of strategic human resource management, particularly during the planning stages of mergers and acquisitions, as it highlights the need to address employee concerns and retain key talent during transitions.