GOLDEN PARACHUTE Meaning and
Definition
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A golden parachute is a term used to describe a financial arrangement primarily offered to executives and high-level corporate employees upon their departure from a company, usually due to a merger, acquisition, or a change in ownership. It refers to a generous package of benefits, including substantial severance payment, stock options, bonuses, and other perks provided as a form of protection or compensation to executives in the event of their involuntary or forced departure.
The term "golden parachute" is derived from the idea that it acts as a safety net, allowing executives to land smoothly and financially secure after their time at the company comes to an end. Typically, the payment and benefits within a golden parachute contract exceed what regular employees would receive under similar circumstances.
The purpose of a golden parachute is to incentivize executives to join a company, as it provides assurance that they will be well-compensated if a change in ownership or management occurs. Proponents argue that it helps retain top talent, protects executives from sudden job loss, and provides continuity during transitional periods. However, critics of golden parachutes argue that they can lead to excessive payouts and create a misalignment of interests between executives and shareholders, as executives may prioritize their personal gain over the company's long-term success.
Golden parachutes have been a subject of controversy and debate, as they raise concerns about executive compensation and corporate governance. Some countries and jurisdictions have implemented regulations and policies to limit or restrict the use of golden parachutes, aiming to promote transparency and fairness in executive compensation practices.
Common Misspellings for GOLDEN PARACHUTE
- folden parachute
- volden parachute
- bolden parachute
- holden parachute
- yolden parachute
- tolden parachute
- gilden parachute
- gklden parachute
- gllden parachute
- gplden parachute
- g0lden parachute
- g9lden parachute
- gokden parachute
- gopden parachute
- gooden parachute
- golsen parachute
- golxen parachute
- golcen parachute
- golfen parachute
Etymology of GOLDEN PARACHUTE
The term "golden parachute" originated in the business world in the 1980s. It is a metaphorical phrase used to describe a financial arrangement or benefits given to executives and other high-ranking employees in the event of a merger, acquisition, or corporate takeover that results in their job termination or significant changes in their roles.
The term itself combines two elements: "golden" and "parachute".
- "Golden" symbolizes wealth, prosperity, and valuable assets. It refers to the significant financial benefits and compensation packages provided to executives in these situations.
- "Parachute" refers to a device used to slow down the descent of a falling person or object, ensuring a safe landing. In the context of business, it represents a safety net that protects executives from severe consequences when facing job loss due to corporate restructuring or changes in ownership.
Idioms with the word GOLDEN PARACHUTE
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a golden parachute
The idiom "a golden parachute" refers to a financial arrangement or benefit provided to a high-level executive or employee when they are terminated or when a company undergoes significant changes such as mergers or acquisitions. It typically includes a substantial amount of money, bonuses, stock options, or other financial incentives as a form of compensation or security in the event of job loss or organizational restructuring. The term "golden parachute" implies a cushion or safety net for the individual, allowing them to land softly and maintain their financial well-being despite drastic career changes or disruptions.
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golden parachute
A golden parachute is a financial package or benefit arrangement provided to a high-level executive in the event they are terminated from their job or the company is taken over by another company. This package typically includes generous compensation, bonuses, stocks, and other perks designed to provide financial security to the executive.
Similar spelling words for GOLDEN PARACHUTE
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