golden parachute

noun

: a generous severance agreement for a corporate executive in the event of a sudden dismissal (as because of a merger)

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The Gilded History of Golden Parachute

In 1981 an employee of a major company undergoing a corporate merger referred cynically to the huge severance packages given ejected executives as "golden parachutes." It isn't clear whether the employee actually coined the term, but it is well documented that both "golden" and "parachute" were already part of corporate parlance by that time. Since the 1960s, the business world had been using "golden handshake" for a compensatory package accompanying a termination or forced retirement. The image of the parachute, evoking a comfortable and painless landing, may have been inspired by the popular book about career change by Richard Bolles, titled What Color Is Your Parachute?

Examples of golden parachute in a Sentence

Recent Examples on the Web

Despite struggling to compete with Nvidia, Pat Gelsinger will sail off into the sunset on a golden parachute. —Melvin Backman, Quartz, 4 Dec. 2024

This isn’t just about stock price and golden parachutes If Intel is falling apart, this isn’t just a business story. —Sean Hollister, The Verge, 3 Dec. 2024

Teng opened his cross-examination, pressing the CEO to remind the court of the size of his golden parachute if the deal is approved: $43 million. —Alexander Coolidge, The Enquirer, 5 Sep. 2024

And with former Viacom International chief Bakish counting his golden parachute severance pay, there is no one (and no reason) to protect any underperforming overseas businesses. —Tony Maglio, IndieWire, 12 June 2024

Word History

First Known Use

1981, in the meaning defined above

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Legal Definition

golden parachute

noun

gold·​en para·​chute

: an agreement providing for generous compensation to an executive upon dismissal