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Which Golden Parachute Statement is False

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Golden parachutes are contractual provisions that specify a payment to executives in case of dismissal. They may weaken the incentive for executives to exert effort as the threat of dismissal is lessened. Golden parachutes do not necessarily help prevent management entrenchment or improve staff retention.

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Which of the following statements about golden parachutes is false? A.Golden parachutes may weaken the incentive for executive to exert effort. as they weaken the threat of dismissal B.Golden parachutes may help to prevent management entrenchment by giving executives incentive not to resist hostile takeovers C.Golden parachutes are contractual provisions that specify a payment to executives in case of dismissal D.Golden parachutes may help improve staff retention

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Which Golden Parachute Statement is False

  • 1. Which of the following statements about golden parachutes is false? A.Golden parachutes may weaken the incentive for executive to exert effort. as they weaken the threat of dismissal B.Golden parachutes may help to prevent management entrenchment by giving executives incentive not to resist hostile takeovers C.Golden parachutes are contractual provisions that specify a payment to executives in case of dismissal D.Golden parachutes may help improve staff retention