golden parachute

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.

golden parachute

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

golden parachute

¹

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

golden parachute

²

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.”

Notes

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.

Word History and Origins

Origin of golden parachute¹

First recorded in 1980–85

Example Sentences

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

Facing problems he caused from all directions, Snyder has the chance to escape on a golden parachute.

From Washington Post

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

From New York Times

Related Words

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