Human Resources Certification Institute (HRCI) Practice Exam

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Which executive compensation benefit is designed to ensure a CEO remains with a company after a merger or acquisition?

  1. Golden handcuff

  2. Golden parachute

  3. Golden life jacket

  4. Golden handshake

The correct answer is: Golden life jacket

A golden handcuff would be incorrect as it is typically used as an incentive to encourage performance rather than retention. A golden parachute would be incorrect as it is a large payout given to a CEO when they are terminated from a company, not necessarily to ensure they remain after a merger or acquisition. A golden handshake would also be incorrect as it is a payment made to a CEO upon their departure from a company, rather than to ensure their retention after a merger or acquisition.

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