So far this year, about $3.2 trillion worth of deals have been announced globally, the most since 2007, according to data provider Dealogic. This year's flurry of corporate mergers may not pay off for shareholders in the long run, but one thing is for sure: The bosses who are selling their companies will do just fine.
The CEOs who've decided to sell in the 10 biggest U.S. deals this year are set to rake in an estimated $430 million in "golden parachute" payments, according to a study done by pay-tracking firm Equilar at the request of The Associated Press. Translation: It would take the typical American household 847 years of work to get what the average CEO will receive in one fell swoop.
The payoffs are often negotiated when CEOs are hired. They're designed to compensate chief executives for losing their jobs and years of big pay so they won't stand in the way of a sale that is good for shareholders.
But some critics say the packages are so lavish, they can be an incentive to strike iffy deals. Numerous studies have shown that many M&A deals are bad for shareholders of the combined companies in the long run.
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