Golden handshake

Golden handshake

A golden handshake is a clause in an executive employment contract that provides the executive with a significant severance package in the case that the executive loses his or her job through firing, restructuring, or even scheduled retirement. This can be in the form of cash, equity, and other benefits, and is often accompanied by an accelerated vesting of stock options.

Typically, "golden handshakes" are offered only to high-ranking executives by major corporations and may entail a value measured in millions of dollars. Golden handshakes are given to offset the risk inherent in taking the new job, since high-ranking executives have a high likelihood of being fired and since a company requiring an outsider to come in at such a high level may be in a precarious financial position. Their use has caused some investors concern since they do not specify that the executive had to perform well. In some high-profile instances, executives cashed in their stock options, while under their stewardship their companies lost millions of dollars and thousands of workers were laid off.

ee also

* Golden Parachute
* Golden Life Jacket
* Golden handcuffs
* Golden Boot
* Voluntary Redundancy

External links

* [] - The Guinness World Records page on F. Ross Johnson, the record holder for largest Golden handshake (US$53,800,000 from RJR Nabisco) in February 1989

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Look at other dictionaries:

  • golden handshake — Also known as a golden parachute. Financial benefits provided to employees (usually senior employees or directors) on leaving their employer. Such provisions may be: • A long fixed term contract giving rise to damages in the event of early… …   Law dictionary

  • golden handshake — A golden handshake is a payment made to someone to get them to leave their job …   The small dictionary of idiomes

  • golden handshake — golden handshakes N COUNT A golden handshake is a large sum of money that a company gives to an employee when he or she leaves, as a reward for long service or good work …   English dictionary

  • golden handshake — n BrE a large amount of money given to someone when they leave their job …   Dictionary of contemporary English

  • golden handshake — noun count BUSINESS a large amount of money given to a senior manager in a company when they leave their job …   Usage of the words and phrases in modern English

  • golden handshake — ► NOUN informal ▪ a payment given to someone who is made redundant or retires early …   English terms dictionary

  • golden handshake — n. Informal payment offered to induce an employee to retire early …   English World dictionary

  • golden handshake — A large payment to a senior employee who is forced into retirement or fired as a result of a takeover or similar development. Bloomberg Financial Dictionary * * * golden handshake ˌgolden ˈhandshake also handshake noun [countable] HUMAN RESOURCES …   Financial and business terms

  • Golden Handshake — A stipulation in an employment agreement which states that the employer will provide a significant severance package if the employee loses their job. A golden handshake is usually provided to top executives for loss of employment through layoffs …   Investment dictionary

  • golden handshake — UK / US noun [countable] Word forms golden handshake : singular golden handshake plural golden handshakes business a large amount of money given to a senior manager in a company when they leave their job …   English dictionary

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