golden parachute

Definition of "golden parachute"
  1. A lucrative contract between a company and a top executive, which promises significant financial benefits if the company changes ownership or the executive is forced into early retirement
How to use "golden parachute" in a sentence
  1. The CEO was not worried about the merger due to his golden parachute clause.
  2. Activist shareholders criticized the golden parachute arrangements for being too generous.
  3. Golden parachute provisions can be a deterrent for potential hostile takeover attempts.

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