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Don't expect to get both a higher payout and a bigger deduction if interest rates rise, however.
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If the downside is a longer loss of liquidity compared with income annuities, the trade-off is a higher payout.
But it may be a last-ditch effort to seek a higher payout even if the deal goes through.
It's a somewhat uncommon move that could yield a higher payout than the $13.65-a-share that Michael S. Dell and the investment firm Silver Lake are offering.
But the Indiana pension plans and a small group of hedge funds backed out, seeking a higher payout for their claims.
With Elan set to receive a higher payout if Tysabri sales improve, it looks as though Royalty Pharma is trying to score a bargain.
Also remember that your payments will be influenced by the interest rate environment: if rates rise, you'll lock in a higher payout rate, and vice versa.
Gone are the days when executives heading troubled companies would agree to nominal pay upfront in the hopes of a higher payout if the company survived and thrived.
If triggered, the insurance could have meant a higher payout for Hogan but would have protected Denton from personal financial ruin.
A 2003 paper* by Robert Arnott and Clifford Asness found that companies which paid a low proportion of their profits in the form of dividends displayed slower subsequent profits growth than those with a higher payout ratio.
The problem began with a gesture to give existing retirees a higher payout than they where entitled to through a thirteenth-month payment from 'surplus earnings'.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com