Final answer:
Golden parachutes are payments and benefits given to executives in the event of a job loss due to a change in company ownership, serving as compensation and a tactic to deter hostile takeovers.
Step-by-step explanation:
Payments made to executives who are departing a company as a result of a change in ownership are commonly referred to as golden parachutes. These are contractual agreements that provide senior managers and executives with significant benefits if they lose their job due to a merger or takeover.
Benefits may include cash bonuses, stock options, or generous severance pay. Golden parachutes are meant to compensate executives for the loss of their position, attract and retain top talent, and can also act as a defensive measure against hostile takeovers, making a company less attractive to potential acquirers because of the associated costs.
The payments made to executives who are leaving the company based on a change in company ownership are known as golden parachutes. These are typically included as part of executive compensation contracts. Golden parachutes are designed to provide financial security to executives in the event of a company's acquisition or merger.