T corporation has 150 shareholders and was publicly traded. In 2022, the majority of T corporation stock was purchased by X company, The CEO for T corporation, Sam, was immediately asked to leave and the CEO of X company took control. Sam had been an officer of X corporation, and had been paid an average annual compensation amount of $500,000 over the past 5 years. Six months before the takeover by X corporation, Sam signed an agreement with T corporation, providing that should he be terminated from T corporation, unless terminated "for cause," Sam would be receive a severance payment of $5 million.?

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Sam the former CEO of T corporation had signed an agreement with the company six months before it wa... View the full answer