Why Are Corporate Executives Are Often Guaranteed "Golden Parachutes" If

Multiple Choice

Why are corporate executives are often guaranteed "golden parachutes" if they should be fired?

A) To give them the incentive to take the higher levels of risk desired by stockholders.
B) To ensure that they exercise great caution in spending stockholders' money.
C) To encourage the most experienced people to apply for the executive positions.
D) To provide a signal to the public that the firm is on solid financial ground.