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What Is a Golden Parachute?

By Kristi Waterworth – Updated Feb 22, 2025 at 9:52AM

Key Points

  • Golden parachutes are large benefits for top executives, affecting company acquisition costs.
  • Silver and tin parachutes provide severance to lower-ranking employees and long-term staff.
  • Investors must consider golden parachutes as potential debts affecting a company's valuation.
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