financial benefits provided to employees (usually senior employees or directors) on leaving their employer The shareholders were angered by a golden parachute clause in the director's service contract entitling her to a payout of £2 million if the company is taken over.
- Section 320 of the Companies Act did not apply to a golden parachute payment by the company to the director.
- The government urged companies last month to remove golden parachutes altogether.
- Golden parachute payments often anger the public during economic downturns.
- golden handshake: a large payment made by a company to a senior executive upon termination of employment before his or her contract ends.