| 释义 |
golden parachute
golden parachuten. An employment agreement that guarantees a key executive lucrative severance benefits.golden parachute n (Banking & Finance) informal a clause in the employment contract of a senior executive providing for special benefits if the executive's employment is terminated as a result of a takeover gold′en par′achute
n. an employment agreement guaranteeing an executive substantial compensation in the event of dismissal as a result of a merger or takeover. [1980–85] Thesaurus| Noun | 1. |  golden parachute - giving top executives lucrative benefits that must be paid by the acquirer if they are discharged after a takeoverporcupine provision, shark repellent - a measure undertaken by a corporation to discourage unwanted takeover attempts |
Translationsgolden parachute
golden parachuteA large severance package given to an executive who is forced to leave a company due to a corporate merger or takeover. Daniel refused to take the position unless the company added a golden parachute clause to his contract.See also: golden, parachutegolden parachute n. a special kind of severance pay for persons who may be forced to leave a job. (see also golden handcuffs.) If all the golden parachutes were used at the same time, it would bankrupt the company. See also: golden, parachutegolden parachuteAn employment agreement that gives generous benefits to its high-ranking executives if they are dismissed owing to a company merger or takeover. This term, dating from about 1980, may have been based on the older golden handshake, which offers an employee generous benefits or a bonus in exchange for early retirement. It dates from the mid-1900s, when a dwindling school population prompted many localities to offer such an incentive to teachers. In contrast, golden handcuffs are a financial incentive to keep an employee from leaving a company. Stock options that can be exercised only far in the future are a popular form of golden handcuffs. This term dates from about 1970.See also: golden, parachutegolden parachute
golden parachute, a contract given to top executives of a corporation to provide benefits in case of job loss due to a takeover by another firm or a merger. The unusually generous benefits may include substantial severance pay, a one-time bonus payment when employment ends, or stock options.golden parachute
Golden parachuteCompensation paid to departing top-level management by a target firm if a takeover occurs.Golden HandshakeA clause in a high-ranking executive's hiring contract describing a lucrative severance package once the executive leaves the company. The package often includes cash and stock options worth millions of dollars, as well equity in the company. The executive is normally eligible for a golden handshake regardless of the circumstances under which he/she left the company, whether retirement, redundancy brought about from a merger or acquisition, or termination for mismanagement. Controversy surrounding the practice tends to increase in times of increased mergers, as well as in economic downturns.golden parachute An employment agreement that provides a firm's key executives with lucrative severance benefits in the event that control of the firm changes hands and that shifts in management subsequently occur. A golden parachute benefits management more than the stockholders. Also called golden umbrella. See also silver parachute.Case Study After a rocky year that included embarrassing financial disclosures and a plummeting stock price, one-time high-flying Enron Corporation was forced in November 2001 to seek a major cash infusion to shore up its balance sheet. Improper accounting caused the Houston-based energy trading company to disclose that the firm would reduce four years of previously reported income by over half a billion dollars. The company was also forced to write down assets and reduce shareholders' equity. Competitor Dynegy, Inc., came to Enron's aid by proposing an all-equity $8.85 billion takeover. Enron's chairman, Kenneth Lay, was eligible for severance benefits under certain circumstances, including a change in management that resulted in a termination of his employment. Lay had worked at the firm since 1984, when it was a regional pipeline company operating under as Houston Natural Gas Company. The golden parachute was to pay Lay a lump sum of $20.2 million for each year remaining on his contract. The chairman had three years remaining at the time of the Dynegy offer, meaning he was entitled to receive a lump-sum payment of over $60 million. To the surprise of many, Lay announced at a meeting with Enron employees that he would waive his right to the severance pay. As it turned out, the Dynegy offer was shortly withdrawn and a month later Enron was in bankruptcy. Information released following the bankruptcy indicated that Enron executives had personally profited in financial dealings with the firm.golden parachute see TAKEOVER BID.golden parachute see TAKEOVER BID.Golden ParachuteAn agreement entered into by a corporation with its top executives to make payments to the executives in the event of a change in corporate control. Such payments are treated as compensation.golden parachute
Related to golden parachute: greenmail, poison pill, Silver ParachuteWords related to golden parachutenoun giving top executives lucrative benefits that must be paid by the acquirer if they are discharged after a takeoverRelated Words- porcupine provision
- shark repellent
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