Golden parachute

Golden parachute,

Definition of Golden parachute:

  1. Golden parachutes are thus named as such because they are intended to provide a soft landing for employees of certain levels who lose their jobs.

  2. A large payment or other financial compensation guaranteed to a company executive should the executive be dismissed as a result of a merger or takeover.

  3. A golden parachute consists of substantial benefits given to top executives if the company is taken over by another firm, and the executives are terminated as a result of the merger or takeover. Golden parachutes are contracts with key executives and can be used as a type of anti-takeover measure, often collectively referred to as poison pills, taken by a firm to discourage an unwanted takeover attempt. Benefits may include stock options, cash bonuses, and generous severance pay.

  4. Huge bonus and/or a lucrative contract offered to a director or key employee to compensate for loss of office after a takeover or merger. It may also include a stockholding (shareholding) in the new setup.

How to use Golden parachute in a sentence?

  1. In addition to large bonuses and stock compensation, golden parachutes may include ongoing insurance and pension benefits.
  2. Golden parachutes are lucrative severance packages inked into the contracts of top executives that compensate them when they are terminated.
  3. The practice is controversial as poorly performing or short-lived CEOs and other top executives can get paid large sums for little or poorly perceived work.

Meaning of Golden parachute & Golden parachute Definition

Golden Parachute,

What Does Golden Parachute Mean?

The Golden Parachute has significant benefits for senior executives when a company is acquired by another company and executives are fired due to mergers or acquisitions. Golden parachutes are contracts with key officials and can be used as a form of counter-purchase action, often collectively called poison pills, which companies take to thwart unwanted acquisition efforts. Are Benefits can include stock options, cash gifts and generous compensation.

  • Golden Parachute is a lucrative compensation package that is written into the management contract and pays on completion.
  • In addition to higher premiums and share payments, Golden Parachute can include permanent insurance and retirement benefits.
  • The process is controversial because poorly performing or short-term CEOs and other senior executives can charge large sums for poor or poorly received jobs.

The company has an agreement with an employee, usually a senior manager, who promises that if the employee is forced to leave, usually due to a change in ownership of the company. The company is beyond the control of the original company.

Literal Meanings of Golden Parachute

Golden:

Meanings of Golden:
  1. Colorful or shiny like gold.

  2. Made or made of gold.

  3. (At the same time) very happy and successful.

  4. Rich and sweet (with singing voice).

  5. I mean, fifty years and something.

Sentences of Golden
  1. Shiny golden curls

  2. A golden crown

  3. The Golden Day before World War I.

  4. A light golden choir

  5. American Ballet Theater Golden Jubilee Show

Synonyms of Golden

gold-coloured, blonde, yellow, yellowish, fair, flaxen, tow-coloured, successful, prosperous, flourishing, thriving

Parachute:

Meanings of Parachute:
  1. A fabric roof that fills with air and slowly descends to an individual or an associated person or heavy object to act as a break when falling from an airplane or detaching from the tail of a vessel. Allows.

  2. Issuing an airplane parachute.

  3. Appointment or appointment in case of emergency or out of current classification.

Sentences of Parachute
  1. The savior of many pilots is a parachute

  2. Airborne units are deployed to protect the airport.

  3. An old friend of the CEO is controversially appointed to the post