Pension Parachute

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Definition: Pension Parachute

Pension Parachute
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Full Definition of Pension Parachute

A pension provision that allows a company to take excess pension funds during a hostile takeover and use them to benefit the pension beneficiaries in some manner. This action prevents the company initiating the hostile takeover from using excess pension funds to finance the hostile acquisition and also serves to ensure some protection for the pension participants. A pension parachute is similar to a poison pill because it deters hostile takeovers.

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https://payrollheaven.com/define/pension-parachute/
Modern Language Association (MLA):
Pension Parachute. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
February 03, 2025 https://payrollheaven.com/define/pension-parachute/.
Chicago Manual of Style (CMS):
Pension Parachute. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
https://payrollheaven.com/define/pension-parachute/ (accessed: February 03, 2025).
American Psychological Association (APA):
Pension Parachute. PayrollHeaven.com. Retrieved February 03, 2025
, from PayrollHeaven.com website: https://payrollheaven.com/define/pension-parachute/

Definition Sources

Definitions for Pension Parachute are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 16th November, 2021 | 0 Views.