Parachute payments, also known as golden parachutes, are a form of compensation given to executives or employees upon termination or change in corporate ownership. Synonyms for this term include severance packages, exit payments, golden handshakes and termination payouts. The purpose of such payments is to provide compensation for the executive or employee's service to the company and to secure their loyalty during a transition period. These payments, however, have been criticized for being excessive and rewarding failure. Alternatives to parachute payments include stock options, bonuses and other forms of compensation tied to company performance or long-term retention objectives.