Definition
An agreement between a company and an employee, usually an executive, specifying that the employee will receive certain significant benefits if employment is terminated.
See Also
How People Actually Use It
A clause in an executive's employment contract specifying that he/she will receive large benefits in the event that the company is acquired and the executive's employment is terminated. These benefits can take the form of severance pay, a bonus, stock options, or a combination thereof.
"Larry Johnston, the biggest douche bag in the world is getting a 120 million dollar golden parachute for destroying Albertsons, one of the largest grocery chains in America.. Fuck him.."
Source: Urban Dictionary