what is a golden parachute 
a golden parachute consists of substantial benefits given to top executives if the company is taken over by another firm and the executives are terminated as a result of the merger or takeover golden parachutes are contracts with key executives and can be used as a type of anti takeover measure often collectively referred to as poison pills taken by a firm to discourage an unwanted takeover attempt benefits may include stock options cash bonuses and generous severance pay golden parachutes are thus named as such because they are intended to provide a soft landing for employees of certain levels who lose their jobs 