Parachute Payment

Pronunciation: /ˈpɛrəˌʃuːt ˈpeɪmənt/

Definitions of parachute payment

noun a sum of money paid to an employee as compensation in the event of a sudden termination or change in ownership of a company

Example Sentences

A1 A parachute payment is a sum of money paid to an employee when they leave a company.

A2 Employees may receive a parachute payment if they are made redundant.

B1 Parachute payments are designed to provide financial support to employees during a period of transition.

B2 The company offered a generous parachute payment to the departing executive.

C1 The CEO negotiated a substantial parachute payment as part of his employment contract.

C2 The board of directors approved a parachute payment plan for key executives in case of a change in ownership.

Examples of parachute payment in a Sentence

formal The executive received a large parachute payment upon leaving the company.

informal When the CEO got fired, he got a huge parachute payment as a severance package.

slang The boss scored a fat parachute payment when he got the boot.

figurative Receiving a parachute payment can soften the blow of losing a job.

Grammatical Forms of parachute payment

• plural: parachute payments
• present tense: parachute payment
• future tense: will parachute payment
• perfect tense: has parachuted payment
• continuous tense: is parachuting payment
• singular: parachute payment
• positive degree: parachute payment
• infinitive: to parachute payment
• gerund: parachuting payment
• participle: parachuted payment

Origin and Evolution of parachute payment

First Known Use: 1976 year

Language of Origin: English

Story behind the word: The term 'parachute payment' originated in the United States in the mid-20th century.

Evolution of the word: Originally used in the context of executive compensation, 'parachute payment' has evolved to encompass a broader range of severance and termination payments made to high-level employees.