Golden Life Jacket(redirected from Golden Life Jackets)
Golden Life Jacket
In an acquisition, an offer by an acquiring company to the executives of the target company of lucrative compensation packages in exchange for remaining with the company. The packages often include large bonuses and in-the-money options, as well equity in the company. A golden life jacket helps the acquiring company retain executives who have run the target company, thus reducing the risk that the acquiring company will make some large mistake in management. It also reduces the inconvenience of hiring numerous executive as once. The practice is controversial, as golden life jackets may encourage executives to make decisions that are not in the best interest of shareholders.
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