Definition, Meaning & Synonyms

golden-parachute

noun

/ˈɡoʊldən ˈpærəˌʃut/

Definition

A financial agreement that provides substantial benefits to top executives when they leave a company, often in the event of a merger or acquisition.

Examples

After the merger, the CEO received a golden parachute worth millions.
Golden parachutes are often criticized for rewarding executives excessively.
The company’s board decided to include a golden parachute in the contract to attract top talent.

Meaning

The term refers to the lucrative financial compensation and benefits package offered to individuals, especially executives, to ensure their departure is cushioned by a secured financial safety net.