golden parachute
1 of 1noun/ˈɡoʊldən ˈpærəʃut/
Forms:golden parachutes
1
a financial compensation that is offered to a top executive in the event that their employment is terminated
The phrase "golden parachute" originates from the world of corporate finance and executive compensation. This idiom is used to describe a substantial severance package or financial benefits offered to executives if they are forced to leave their position due to certain circumstances, such as a merger, acquisition, or termination.
- As the company faces a potential merger, the executives are concerned about the future of their golden parachutes.
- The CEO negotiated a golden parachute in her contract to ensure financial security if the company undergoes a takeover.
- When the CEO resigned, he received a generous golden parachute as part of his exit package.