A golden parachute is a generous severance package given to top executives—like CEOs—if they lose their job due to things like a company being sold or new leadership taking over.

What’s in the package?

• Big cash payout (often years’ worth of salary)
• Stock benefits (like accelerated vesting of stock options)
• Continued perks (health insurance, job search help, etc.)

Why do companies offer it?

• To attract and retain top talent
• To help execs stay objective during mergers or buyouts
• To soften the blow if their career gets disrupted

Why is it controversial?

• It can feel like rewarding failure
• Some worry it encourages risky decisions, since execs know they’ll be paid well even if things go wrong

In short: It’s a financial safety net for execs—part golden handshake, part golden goodbye.

What do you think about the Golden Parachute?

The market is in a tizzy now, freefalling faster than a skydiver. You have options to ensure your nest egg isn’t affected by market forces or the longevity of your job. Let’s discuss.