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Golden Parachute

Description:

A golden parachute is a financial compensation package that is provided to top executives or key employees in the event of a merger, acquisition, or other significant corporate event that results in their termination or forced resignation. It is typically a generous severance agreement that includes substantial benefits and financial rewards.

Senses and Usages:

1. Noun - Financial Compensation:

In this sense, a golden parachute refers to the specific compensation package given to executives upon their departure from a company due to certain circumstances such as a change in ownership.

Example Sentence:

- The CEO's golden parachute amounted to a staggering $20 million in cash and stock options.

- She negotiated a golden parachute deal that would guarantee a year's salary and healthcare benefits if her job was eliminated as a result of a takeover.

2. Noun - Generous Severance Agreement:

Here, golden parachute refers to an extensive severance agreement that offers substantial benefits to executives, often seen as excessive compared to regular employee severance packages.

Example Sentence:

- The company's golden parachute policy has received criticism for its disproportionate benefits to top executives while leaving other employees with far less when laid off.

- The board of directors revised the golden parachute policy to ensure a more equitable distribution of severance benefits among all employees.

3. Verb - Offering a Golden Parachute:

As a verb, golden parachute can describe the action of presenting an executive with a lucrative severance agreement in anticipation of a future event.

Example Sentence:

- The company decided to golden parachute their CFO as a strategic move to retain valuable leadership during the imminent merger.

- Top executives were golden parachuted as a safeguard against hostile takeovers.

Related Products:

You may be interested in the following products related to golden parachutes:

• Books on executive compensation
• Severance agreement templates
• Career transition resources