Golden Parachute

A golden parachute has been defined as an agreement between a company and an employee (usually upper executive) specifying that the employee will receive certain significant benefits if employment is terminated. Most definitions specify the employment termination is as a result of a merger or takeover, also known as "Change-in-control benefits". But more recently the term has been used to describe excessive CEO (and other executives) severance packages unrelated to change in ownership (also known as a Golden handshake). The benefits may include severance pay, cash bonuses, stock options, or other benefits.