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These payments cause controversy for several reasons. One being that often a company is a target for being acquired because it is performing poorly and that poor performance causes the Market Capitalization , or cost to purchase the company, to be lower. If purchased, the CEO would receive a large sum of money even though he had arguably done a bad job of running the company previously.

CalPERS recently announced they will be using their shareholder voting power to fight golden parachutes.

Golden parachutes are one element of many issues within the field of Executive Compensation .