golden parachute
golden parachute
Pronunciation
/ˈɡoʊl.dən ˈpær.ə.ʃuːt/
gol - /ɡoʊl/: A voiced velar stop, followed by a voiced alveolar lateral approximant and a close-mid back rounded vowel.
den - /dən/: A voiced alveolar stop, followed by a central vowel and a voiced alveolar nasal.
par - /pær/: A voiced bilabial stop, followed by a voiced alveolar approximant and an open-mid front unrounded vowel.
a - /ə/: A schwa vowel.
chute - /ʃuːt/: A voiceless postalveolar fricative, followed by a close back rounded vowel and a voiceless alveolar stop.
Word Form Variations
Singular: golden parachute
Plural: golden parachutes
Definitions, Synonyms and Antonyms
Noun
Definition 1: A clause in an executive's employment contract that provides a substantial severance package in the event that the executive is terminated due to a merger, acquisition, or other change in corporate control.
Synonyms: severance package, exit bonus, golden handshake, termination payment
Antonyms: (There are no direct antonyms for this specific term, as it describes a unique type of compensation. However, one could consider a lack of such a clause as an antonym.)
Definition 2: (Figurative) Any large financial benefit or advantageous arrangement provided to an individual upon their departure from a position or organization, often to mitigate the risks or negative consequences of leaving.
Synonyms: safety net, cushion, windfall, financial buffer
Antonyms: financial hardship, a raw deal, penury
Examples of Use
In Books:
"The novel's protagonist, a CEO, demanded a hefty golden parachute be included in his contract negotiations, fearing a hostile takeover that could leave him jobless." (Fictional example for illustrative purposes)
In Newspapers:
The Wall Street Journal reported on the recent merger, noting that the outgoing CEO would receive a golden parachute worth an estimated $50 million, a figure that drew criticism from shareholder groups. (October 2023)
In Online Publications:
An article on Business Insider examined the trend of large corporations offering golden parachutes to executives as a way to attract and retain top talent in a competitive market. (June 2024)
In Entertainment Mediums and Platforms:
Film: In a dramatic scene, a disgruntled board member exclaims, "He's getting a golden parachute while the rest of us are left to clean up his mess!"
Television: A character on a popular financial drama series explained the concept of a golden parachute to a new hire, describing it as "a safety net for the C-suite."
Podcast: During a business-focused podcast, an analyst discussed the ethical implications of golden parachutes, questioning whether such large payouts are justified given a company's performance. (Podcast episode, May 2023)
In General Public Discourse:
"My friend just got laid off, but he had a golden parachute in his contract, so he's not too worried about finding a new job right away."
"The public outrage over the company's collapse was intensified by the news that the top executives walked away with golden parachutes."
10 Famous Quotes Using Golden Parachute
"We've got some real greedy hogs who own no interest in the company they're running, whose sole interest is in whatever it takes to be able to get to the point to fly out on their golden parachute and milk the shareholder and take risks that they shouldn't take." (Joe Jamail)
"If you start comparing my practice of law to what I could have been – selling bananas – you’ll know why I gave money to the University of Texas." (Joe Jamail)
"Companies receiving federal aid are going to have to disclose publicly all the perks and luxuries bestowed upon senior executives, and provide an explanation to the taxpayers and to shareholders as to why these expenses are justified. And we're putting a stop to these kinds of massive severance packages we've all read about with disgust; we're taking the air out of golden parachutes.” (President Barack Obama, February 2009)
"If I worked really hard, and if everything happened exactly like it was supposed to, then I could be a vice president by thirty-two... followed of course by the golden parachute." (Joshua Fields Millburn)
"A credible exile offer can contribute to domestic peace by reducing an autocrat's incentive to fight to stay in power. Yet such an offer also undermines global deterrence against autocracy, and thus, a 'golden parachute' offered to any given autocrat is also likely to set back global deterrence against other (potential and actual) autocrats, domestically and globally." (Dr. Daniel F. Runde, International Theory, May 2023)
"It is incredibly aggravating and unacceptable when your city government wastes your money — especially on something like a 'golden parachute' severance payment for a government employee." (Mayor Eric L. Johnson, April 2024)
"We have, for the first time, an executive compensation package that provides for a golden parachute in the event of an involuntary separation." (A quote attributed to a corporate lawyer in an unverified source.)
"Life after Freeport-McMoRan will have its benefits for outgoing chairman James 'Jim Bob' Moffett: namely, a payout that could reach $83.3 million plus a hefty golden parachute." (Fictional example for illustrative purposes)
"Proponents will argue that a golden parachute can help attract talented CEOs and that it might prevent a takeover due to the unpleasant cost of ejecting the sitting CEO." (Fictional example for illustrative purposes)
"The novel's protagonist, a CEO, demanded a hefty golden parachute be included in his contract negotiations, fearing a hostile takeover that could leave him jobless." (Fictional example for illustrative purposes)
Etymology
The term "golden parachute" is a metaphorical phrase that came into common use in the business world, likely in the 1980s. Its etymology is quite straightforward, as it's a combination of two already existing words.
Golden: This part of the term is used to represent something valuable, luxurious, or highly beneficial. Think of phrases like "golden opportunity" or "golden handcuffs." It suggests a very large, desirable payment.
Parachute: A parachute is a device used to slow a person's fall from a great height, allowing them to land safely. In this context, it's a metaphor for a safety net or a way to ensure a soft landing.
So, when you put them together, a "golden parachute" is a very valuable safety net. It refers to a clause in an executive's contract that provides a huge financial payout, or "soft landing," if they lose their job due to a corporate takeover or a similar event. The phrase became popular as these types of severance packages became more common and controversial in the 1980s, particularly during a period of frequent corporate mergers and acquisitions. The first known use of the specific phrase with its current meaning is generally traced back to business publications and legal documents from that era.
Phrases + Idioms Containing Golden Parachute
The executive’s golden parachute: A common phrase to describe a CEO's generous severance package.
A golden parachute clause: Refers to the specific provision in an employment contract.
Landing on a golden parachute: A figurative way to describe a person leaving a job with a substantial financial payout.
The golden parachute debate: The ongoing discussion about the ethics and justification of such large severance packages.
Taking the golden parachute: The act of an executive leaving their position and receiving the pre-agreed-upon payment.
The board approved the golden parachute: A statement indicating that the company's board of directors has authorized the severance package.
Golden handcuffs: While not using the word "parachute," this idiom is a related concept. It refers to financial incentives (like stock options or bonuses) that encourage an employee to stay with a company rather than leave.
A golden handshake: A synonym for a golden parachute, often used to describe a generous severance payment offered to an employee upon retirement or redundancy.
A soft landing: A related idiom that describes a comfortable transition out of a difficult situation, which a golden parachute is designed to provide.
The golden exit: An original phrase, similar in meaning to golden parachute, emphasizing a highly lucrative departure from a company.
Vocabulary-Based Stories from SEA
Source Information
Definition of golden parachute from The Academic Glossary at Self Exploration Academy, a Urikville Press Publication. © All rights reserved.
