What is Golden Parachute?

Legal Definition
A golden parachute is an agreement between a company and an employee (usually upper executive) specifying that the employee will receive certain significant benefits if employment is terminated. Most definitions specify the employment termination is as a result of a merger or takeover, also known as "Change-in-control benefits", but more recently the term has been used to describe perceived excessive CEO (and other executives) severance packages unrelated to change in ownership (also known as a golden handshake). The benefits may include severance pay, cash bonuses, stock options, or other benefits.
-- Wikipedia
Legal Definition
An agreement between a company and its top executive providing lucrative benefits in the event employment is terminated, usually due to a change in company ownership.
Legal Definition
To compensate for loss of office after a takeover or merger, a huge bonus and/or a lucrative contract or a stockholding (shareholding) in the new setup is offered to a director or key employee.