Golden parachute

A golden parachute is an agreement between a company and an employee (usually an upper executive) specifying that the employee will receive certain significant benefits if employment is terminated. These may include severance pay, cash bonuses, stock options, or other benefits. Most definitions specify the employment termination is as a result of a merger or takeover,[1][2][3] also known as "change-in-control benefits",[4] but more recently the term has been used to describe perceived excessive CEO (and other executive) severance packages unrelated to change in ownership (also known as a golden handshake).[5]

  1. ^ "golden parachute Archived 2017-07-12 at the Wayback Machine". InvestorWordsLL. WebFinance.
  2. ^ "golden parachute". Collins English Dictionary. HarperCollins:London.
  3. ^ "golden parachute". Miriam-Webster Online. Encyclopædia Britannica.
  4. ^ Golden parachutes on the rise during down economy by Éric L’Italien, Lawyer, Norton Rose Canada| Deal Law Wire| 5 April 2012
  5. ^ CEOs' golden parachute exit packages pass $100 million By Gary Strauss, USA TODAY 11/8/2011