SPHR · Question #75
Organizations use change-in-control agreements for executives involved in mergers and acquisitions to:
The correct answer is D. Place management in a protected position before entering into a transaction. Change-in-control agreements protect executives from being terminated or materially disadvantaged after a merger. They are retention tools that provide financial assurance. SPHR strategic compensation models use these agreements to "maintain leadership continuity and…
Question
Organizations use change-in-control agreements for executives involved in mergers and acquisitions to:
Options
- AClearly define the non-compete provisions of an employment contract
- BLock in the value of stock options guaranteed to executives when they are hired
- CModify protocols for business continuity planning
- DPlace management in a protected position before entering into a transaction
How the community answered
(23 responses)- A4% (1)
- B4% (1)
- C9% (2)
- D83% (19)
Explanation
Change-in-control agreements protect executives from being terminated or materially disadvantaged after a merger. They are retention tools that provide financial assurance. SPHR strategic compensation models use these agreements to "maintain leadership continuity and decision-making clarity during acquisition events." They prevent early executive exits that may derail integration plans.
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