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

And Zaslav could receive as much as $335 million more in tax reimbursements to cover excise taxes applied to “golden parachute” payments — which would amount to a total deal payout for him of $886 million.

From MarketWatch

Some $335 million would only kick in if the other payments trigger a 20% federal excise tax on “golden parachute” severance payments he receives.

From The Wall Street Journal

In the event of an involuntary termination, Mr. Agrawal was entitled to a so-called golden parachute payment of $60 million, according to a Twitter securities filing.

From New York Times

Snyder isn’t deserving of a golden parachute any more than was Mozilo, who at last look was living out his golden years in a Santa Barbara, Calif., mansion while still denying any responsibility.

From Washington Post

“I have never, ever heard” of a governor providing such a golden parachute to an appointee who resigned, he said.

From Washington Post

Related Words

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