golden parachute


noun

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

First recorded in 1980–85

British Dictionary definitions for golden parachute

golden parachute

noun

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

Cultural definitions for golden parachute (1 of 2)

golden parachute

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

Cultural definitions for golden parachute (2 of 2)

golden parachute

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.”

notes for golden parachute

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

notes for golden parachute

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