Fich, Eliezer M.; Cai, Jie; Tran, Anh L. - In: Journal of Financial Economics 101 (2011) 2, pp. 413-430
Unscheduled stock options to target chief executive officers (CEOs) are a nontrivial phenomenon during private merger negotiations. In 920 acquisition bids during 1999-2007, over 13% of targets grant them. These options substitute for golden parachutes and compensate target CEOs for the benefits...