golden parachute: Idiom Meaning and Origin
What does ‘golden parachute’ mean?
A golden parachute is a financial arrangement in a contract that guarantees a large payout to a top executive if they are terminated or the company experiences a change in ownership.
Idiom Explorer
The idiom "kill the goose that lays the golden eggs" means to destroy a valuable source of income or opportunity by being greedy or short-sighted.
The idiom "hit the jackpot" means to achieve a great success or obtain an unexpected, significant gain, often in a financial sense.
When someone "hits paydirt," they have unexpectedly or successfully found something valuable or profitable.
A "green handshake" refers to a financial agreement or deal, often occurring in business settings, where a substantial amount of money is paid upfront as a sign of trust or commitment.
A grease payment is a bribe or illegal payment made to someone in power in order to gain an advantage or get something done, often used in official or bureaucratic situations.
The idiom "gravy train" refers to an enjoyable situation where one can easily obtain money or success without much effort or work.
The idiom "gold mine" refers to a valuable or profitable resource or opportunity that can lead to great riches or success.
The idiom "golden years" refers to the time in a person's life when they are retired and able to enjoy leisure activities, usually associated with financial security and freedom from work obligations.
The idiom "golden touch" means the ability to be highly successful in making money or achieving success in various endeavors. It is often used to describe someone who consistently achieves positive outcomes and has a Midas-like ability to turn everything they touch into gold.
The idiom "golden ticket" means an unmissable opportunity or a pass to something special or exclusive, often with great rewards or advantages.
Decoding the Illustrious
The idiom "golden parachute" is a metaphorical expression used in business and corporate contexts in the United States. It refers to a generous financial arrangement granted to a high-ranking executive or employee in the event of their termination or departure. The recipient is expected to receive substantial financial benefits or compensation, similar to a parachute made of gold that cushions the impact of losing their position or job.
The term "golden parachute" gained prominence in the early 1980s during a period of corporate takeovers and mergers in the United States. The media popularized the expression, associating it with large severance packages given to top executives whose companies faced significant changes in ownership or control.
The primary purpose of a golden parachute is to incentivize executives to accept or remain in executive positions, even under uncertain or potentially unfavorable circumstances. It provides financial security and reassurance to executives, compensating them for the risks they face and the loss of their position or influence within the organization.
Golden parachutes often include cash payments, stock options, bonuses, and other forms of compensation as a safety net for executives in case of job loss or corporate restructuring. The terms and provisions of golden parachutes can vary significantly depending on the company, industry, and individual circumstances.
While golden parachutes protect and reward executives, they have also faced criticism and scrutiny. Some argue that these arrangements create moral hazards, as they may incentivize executives to prioritize their own financial gain over the company's long-term success. Excessive payouts, even in cases of subpar performance, have been highlighted as wasteful and excessive.
The idiom "golden parachute" extends beyond corporate mergers and acquisitions and represents excessive compensation and executive perks. It is frequently used in discussions and debates on income inequality, corporate governance, and executive pay. The expression has become embedded in popular culture and is often mentioned in news articles, business publications, and discussions about corporate ethics.
In addition to "golden parachute," several related idioms are commonly used in business circles. These idioms include "golden handshake," "golden hello," "golden handcuffs," and "golden goose."
The idiomatic expression "golden handshake" refers to a generous financial compensation or retirement package offered to an employee upon leaving a company, often at retirement. It is a way for the employer to acknowledge the contributions and years of service of the departing employee.
The idiom "golden hello" refers to a financial incentive, usually in the form of a signing bonus or other benefits, offered to an executive by a new company to entice them to join the organization. This gesture is intended to convince the executive to leave their current position and bring their skills and expertise to the new company.
"Golden handcuffs" is an idiom that describes a financial arrangement used to retain key employees. It typically involves offering significant financial benefits, such as bonuses or stock options, to discourage employees from leaving the company. The goal is to "shackle" employees to the organization by providing them with financial incentives to stay.
The idiom "golden goose" refers to a person, organization, or project that is a reliable and profitable source of income or success. It represents something of value that should be protected and nurtured to ensure its continued growth and prosperity.
These related idioms share a common theme of financial arrangements in the business world. While "golden parachute" focuses on executive compensation in the event of job loss or corporate changes, "golden handshake," "golden hello," "golden handcuffs," and "golden goose" highlight other aspects of financial incentives and rewards in the corporate realm.
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Example usage
Examples of how the idiom golden parachute can be used in a sentence:
- After the company was sold, the CEO received a considerable golden parachute as part of his exit package.
- When the merger was announced, many employees expressed their concerns about potential layoffs and wondered if they would also receive a golden parachute.
- The executive's golden parachute allowed them to retire comfortably even if the company's performance declined.
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