1. giving top executives lucrative benefits that must be paid by the acquirer if they are discharged after a takeover;
The Collaborative International Dictionary of English v.0.48:
parachute \par"a*chute\, v. i.
TO descend to th ground from an airplane or other high place
using a parachute; as, when the plane stalled, he parachuted
safely to the ground.
golden parachute a generous set of financial benefits,
including severance pay, provided by contract to a
high-level corporate employee in the event s/he is
dismissed or his/her job is lost in a corporate takeover
or merger; also, the contract providing for such benefits.
drogue parachute a small parachute that is first released
and opened in order to more reliably deploy a larger
parachute. Also called drogue.
WordNet (r) 3.0 (2006):
n 1: giving top executives lucrative benefits that must be paid
by the acquirer if they are discharged after a takeover