Golden Parachute

Knowledge Center

Summary, forum, best practices, expert tips and information sources.

10 items • 22.278 visits


What is a Golden Parachute? Meaning.

Golden Parachute is a clause in an executive employment contract that provides the executive with a lucrative severance package in the event of their termination, for example in case of a takeover by an acquiring company. May include a continuation of salary, bonus and/or certain benefits and perquisites, as well as accelerated vesting of stock options.

It can be used as a defensive measure used to prevent hostile takeovers. With golden parachutes, employers enter into agreements with key executives and agree to pay amounts in excess of their usual compensation in the event that control of the employer changes or there is a change in the ownership of a substantial portion of the employer's assets.


Top executives are provided with a financial soft landing in the event that a takeover results in discharge. An (unwanted) sideeffect of a golden parachute is that executives that have not perfumed well are not being punished.


The company initiating the hostile takeover, on the other hand, will either have to pay this associated increased costs when acquiring the corporation or back off from the takeover.

Special Interest Group


Golden Parachute Special Interest Group.

Special Interest Group (7 members)


New Topic

Forum about the Golden Parachute.

🔥 NEW Cases of Golden Parachutes. Examples
Hi, do you know of a remarkable case or famous example in which a golden parachute was promised or actually given to som (...)

Start a new forum topic about the Golden Parachute. More info.


Best Practices

The top-rated topics about the Golden Parachute. Here you will find the most valuable ideas and practical suggestions.

Expert Tips

Advanced insights about the Golden Parachute. Here you will find professional advices by experts.

Information Sources

Various sources of information regarding the Golden Parachute. Here you will find powerpoints, videos, news, etc. to use in your own lectures and workshops.

Executive Compensation: Risk Factors and Ways to Manage Them

Executive Compensation, Performance Management, Corporate Governance
Presentation about CEO compensation with special attention to dealing with risks and its influence on those packages. Th (...)

Research Links

Automatically jump to further useful sources regarding the Golden Parachute.

News Videos Presentations Books More






Compare also: Acquisition Integration Approaches  |  Golden Handcuff  |  Golden Handshake  |  Golden Hello  |  Employee Benefits  |  Employee Stock Ownership Plan  |  Employee Stock Options  |  Phantom Stock Plan  |  Anti Hostile Takeover Mechanisms

Special Interest Group

Do you have a keen interest in the Golden Parachute? Become our SIG Leader


Return to Management Hub: Ethics & ResponsibilityFinance & Investing  |  Human Resources  |  Leadership  |  Strategy & Innovation

More on Management  |  Return to Management Dictionary


This ends our Golden Parachute summary and forum.

About 12manage | Advertising | Link to us / Cite us | Privacy | Suggestions | Terms of Service
2021 12manage - The Executive Fast Track. V15.8 - Last updated: 22-10-2021. All names of their owners.