golden parachute


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Related to golden parachute: greenmail, poison pill, Silver Parachute

golden parachute

A large severance package given to an executive who is forced to leave a company due to a corporate merger or takeover. Daniel refused to take the position unless the company added a golden parachute clause to his contract.
See also: golden, parachute

golden parachute

n. a special kind of severance pay for persons who may be forced to leave a job. (see also golden handcuffs.) If all the golden parachutes were used at the same time, it would bankrupt the company.
See also: golden, parachute

golden parachute

An employment agreement that gives generous benefits to its high-ranking executives if they are dismissed owing to a company merger or takeover. This term, dating from about 1980, may have been based on the older golden handshake, which offers an employee generous benefits or a bonus in exchange for early retirement. It dates from the mid-1900s, when a dwindling school population prompted many localities to offer such an incentive to teachers. In contrast, golden handcuffs are a financial incentive to keep an employee from leaving a company. Stock options that can be exercised only far in the future are a popular form of golden handcuffs. This term dates from about 1970.
See also: golden, parachute
References in periodicals archive ?
Prior to forming Golden Parachute Tax Solutions, Laurence was a tax manager with a "Big 4" executive compensation/employee benefits tax practice, and thereafter was an executive compensation consultant with James F.
As for the deductibility of the compensation payments, the court said it depends on whether they are prohibited golden parachute payments.
Some of those being laid off have between $25,000 to $100,000 golden parachute severance pay that they can use to purchase a business.
Well, shareholders must have approved that golden parachute, and a big chunk of their money went out of the value of their stock and into Jill Barad's pocket!"
Drabinsky (who is now a wanted felon in the United States for his creative accounting practices with Livent, the theatre company he was given as part of his golden parachute out of Cineplex) and the de-evolution of civil behaviour that leads one young man to stab another for a "dissing" glance, the actual state of movie-going in Toronto has changed very little in the transpiring 22 years.
Mr Smith's 'golden parachute' matches a pay-off similar to the one granted to former British Airways chief executive Mr Bob Ayling.
She touched lightly on various issues and provided detailed explanation of golden parachute payments.
or the CEO will be dangling from his golden parachute in short order.
It seems unlikely that the Mister Rogers act will lessen the sting of unemployment for Mobil workers who have no golden parachute.
By August 1987, just before he announced his resignation, it was, according to The Arkansas Times, "$22.1 million in the hole" But Bethune was given a golden parachute worth $368,000.
Hypothesis 3: Ceteris paribus, the greater a firm's takeover susceptibility (the lower a firm's EXCESS value), the greater the likelihood is that the CEO will have a golden parachute.
According to expectations, Marissa Mayer, who was the CEO of Yahoo and recently got a $23 million golden parachute for her work there, has stepped down.
Check out the synopses for episodes 9 and 10, titled (http://tvlistings.zap2it.com/tv/incorporated-burning-platform/EP022356970011?aid=zap2it) "Burning Platform" and (http://tvlistings.zap2it.com/tv/incorporated-golden-parachute/EP022356970010?aid=zap2it) "Golden Parachute," respectively, below:
government, which said it was a "golden parachute."
New York, May 26(ANI): A US Congresswoman has reacted angrily to reports that former International Monetary Fund chief Dominique Strauss-Kahn, who is accused of a sex attack on a New York City hotel maid and is currently free on a million dollar cash bail, is set to receive a 250,000 dollar 'golden parachute' severance payment and pension.