golden parachute

Meaning

A lucrative financial agreement or severance package guaranteed to high-level executives if they are forced to leave their company due to a merger, acquisition, or termination.

Examples

• Shareholders were outraged when they discovered the outgoing executive's golden parachute was worth more than the annual profits.
• The board of directors defended the golden parachute as a necessary incentive to attract top-tier talent during volatile market conditions.