Golden Parachute (Noun)
Meaning
Giving top executives lucrative benefits that must be paid by the acquirer if they are discharged after a takeover.
Classification
Nouns denoting acts or actions.
Examples
- The CEO negotiated a golden parachute worth millions of dollars as part of the merger agreement, ensuring he would be well-compensated even if he lost his job.
- Critics argued that the golden parachute deal for the departing executive was excessive and a poor use of company funds.
- As part of the acquisition deal, the target company's top executives were granted golden parachutes, guaranteeing them substantial payouts if they were let go.
- The golden parachute provision in the merger agreement sparked outrage among shareholders, who felt it was unfair to reward executives for failing to prevent the takeover.
- The company's board of directors approved a golden parachute package for the outgoing CEO, which included a hefty severance payment and continued benefits.