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Finance Dictionary and Glossary of Investment Terms
golden parachute
Definition 1.
A clause in an executive's employment contract specifying that he/she will receive large benefits in the event that the company is acquired and the executive's employment is terminated. These benefits can take the form of severance pay, a bonus, stock options, or a combination thereof.
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Definition 2.
Lucrative benefits given to top executives in the event that a company is taken over by another firm, resulting in the loss of their job. Benefits include items such as stock options, bonuses, severance pay, etc.
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Definition 3.
Compensation paid to top-level management by a target firm if a takeover occurs.
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