Pension Parachutes

Rybka, John S.
November 1986
FE: The Magazine for Financial Executives;Nov1986, Vol. 2 Issue 11, p31
Trade Publication
Explains that companies in an overfunded pension position have developed strategies, called "pension parachutes," designed to eliminate the windfall for an acquiring company. Designed to become operative in an unfriendly change in control of the company; Strategy of increasing pension benefits; Providing for retiree medical; Formation of an employee stock ownership plan; Increase in current pensions.


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