golden parachute

American  

noun

1. 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.

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golden parachute British  

noun

1. 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

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golden parachute ¹ Cultural  

1. A provision in the contracts of many top executives that guarantees substantial benefits if they lose their positions.

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golden parachute ² Cultural  

1. 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.”

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Discover More

The term golden handshake means essentially the same thing: “The principal accepted the golden handshake in lieu of being demoted to assistant principal.”

Both expressions are from the last quarter of the twentieth century, when such packages were offered frequently.

Etymology

Origin of golden parachute

First recorded in 1980–85

Example Sentences

Shareholders, however, made known their disdain for Warner Chief Executive David Zaslav’s proposed golden parachute, which could swell to $887 million, depending on when the transaction closes.

From Los Angeles Times • Apr. 23, 2026

Nolan, who’d led AveXis for less than three years, walked away with over $190 million; according to a financial filing, his payout included a golden parachute worth almost $65 million.

From Salon • Feb. 19, 2025

Baldanza resigned in 2016, with a $1 million golden parachute and a lifetime of free Spirit flights, and the company has fallen consistently each year for a decade, leading to its current predicament.

From Slate • Oct. 15, 2024

Upon his retirement, CNN reported Calhoun’s golden parachute will be worth about $45 million in stock awards and options that vest over time.

From Seattle Times • May 12, 2024

Musk is trying to get out of paying senior executives’ golden parachute deals.

From New York Times • Nov. 1, 2022

Related Words

• benefit
• bounty
• dividend
• gift
• gratuity
• perk
• premium
• prize
• reward