|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|
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.”
Note: The term golden handshake means essentially the same thing: “The principal accepted the golden handshake in lieu of being demoted to assistant principal.”
Note: Both expressions are from the last quarter of the twentieth century, when such packages were offered frequently.
A provision in the contracts of many top executives that guarantees substantial benefits if they lose their positions.