Golden Parachute

A financial agreement between a company and a top executive provides a generous severance package or other benefits in the event of a merger or acquisition. This incentivizes the executive to remain with the company and work towards its success, as well as to provide a safety net in case of any unforeseen circumstances. The term “golden parachute” comes from giving a soft landing for executives who may be forced out of their position due to corporate restructuring or other changes.

An example of a “Golden Parachute” in business coaching could be when coaches work with executives to develop contingency plans in case of unexpected leadership changes, including negotiating the terms of a potential golden parachute agreement. By taking a proactive approach and planning ahead, coaches can help executives navigate challenging transitions and protect their financial well-being in the event of unexpected job loss.

Golden Parachute DEFINITION:

1.A financial compensation package offered to top executives in the event of a merger or acquisition. 2.A severance package that includes generous benefits, such as stock options or bonuses, for executives who are terminated due to a change in control of the company.