- an employment contract or agreement guaranteeing a key executive of a company substantial severance pay and other financial benefits in the event of job loss caused by the company's being sold or merged.
Origin of golden parachute
- informal a clause in the employment contract of a senior executive providing for special benefits if the executive's employment is terminated as a result of a takeover
A provision in the contracts of many top executives that guarantees substantial benefits if they lose their positions.
A generous package of benefits offered to an employee as an inducement for early retirement or departure from a company: “Following the merger, many executives decided to leave after the offer of a golden parachute.”