- 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
Related Words for golden parachutepremium, prize, gift, perk, gratuity, benefit, bounty, dividend, reward, gravy, goody, tip, ice, commission, plus, honorarium, frosting, hand-out, superannuation
- 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.”