Series 79: Excess Parachute Payment

Taken from our FINRA Investment Banking Exam

Definition of the term Excess Parachute Payment...

a golden parachute payment that triggers complex tax issues because it exceeds Section 280G’s threshold of three times the executive’s average compensation over the five prior calendar years, less $1. Such payments are a potential complication for M&A transactions.

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Solomon Exam Prep Study Materials for the Series 79
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