Control Premium denotes the additional benefits available to an acquirer for having full control of the business entity compared to the benefits available to the individual ordinary shareholder. The cost of the control is the amount paid by the acquirer over and above the estimated fair market value of the ownership acquired. Some of the benefits associated with control premium are hiring of CEO, approval of budgets, and involvement in major strategic decisions of the firm. Once there is a majority with a control premium, the value of ownership of minority shareholders suffers through discounting. The control premium varies with absolute control commanding the highest premiums. The definition of absolute control varies among jurisdictions. In some jurisdictions, 75% or more majority ownership is required for absolute control in a business entity.