You may have heard the term “golden parachute” without fully understanding what that means. Typically offered only to top executives, the term refers to those perks enjoyed by outgoing company leaders after corporate mergers and acquisitions.
Golden parachutes may have perks like stock options, cash, continued insurance coverage, instant vesting in 401(k) plans, company shares and many other incentives to move the terminated executives quietly out the door.
Don’t expect a golden parachute
First coined in 1961, this term is well on its way to being phased out and still only applies to the top executives of a corporation. But if you are very lucky, you might get an offer of a silver or tin parachute with which to make your landing.
Management employees may be offered silver parachutes with far fewer (but some still substantial) benefits available to them. Tin parachutes are far more common for non management employees to be offered and might include perks like lump-sum compensation for long-term workers or a year’s salary or insurance benefits.
Even if not offered, you can still negotiate
Workers can feel powerless in corporate takeovers and company layoffs. But instead of acting as if you were just a pawn in a company’s chess game, take back some of your power by negotiating for a softer landing by walking away with some form of benefits from your company.
It can be challenging to go into an exit interview and ask for additional compensation from your company. But the truth is that you might get what you seek (or at least gain something), but only if you are prepared to ask and negotiate with your former employer.