golden handshake


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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.

Golden Handshake

A clause in a high-ranking executive's hiring contract describing a lucrative severance package once the executive leaves the company. The package often includes cash and stock options worth millions of dollars, as well equity in the company. The executive is normally eligible for a golden handshake regardless of the circumstances under which he/she left the company, whether retirement, redundancy brought about from a merger or acquisition, or termination for mismanagement. Controversy surrounding the practice tends to increase in times of increased mergers, as well as in economic downturns.

golden handshake

a generous severance payment made to an employee as an inducement to leave an organization. The phrase is also sometimes used to describe payments made to retiring employees as a sign of gratitude for their services. See REDUNDANCY.

golden handshake

a generous severance payment made to a director or worker of a company who is dismissed prior to the expiry of his or her service contract.
References in periodicals archive ?
A RECORD number of company executives received golden handshakes of more than pounds 1 million last year, a new report has shown.
The water chief was shown the door as boss of Anglian Water Group in March 2003 - receiving a golden handshake which topped pounds 1million - after his leadership skills were called into question.
Traditionally, a golden handshake, compensation payment, or lump-sum in lieu of notice has been free of tax, provided the amount is less than pounds 30,000.
On Thursday, he made his choice and fired Stuckey, who has threatened to sue and almost certainly will wind up with the same kind of golden handshake that so many City Hall officials have received over the years.
At least they're being moved with a golden handshake, with the option of later moving back into the area.
Basically, I need you to give me a huge golden handshake for redundancy.
Pedersen wants to stay but may take a golden handshake to go.
If he gets expenses for this, it should be taken out of his golden handshake when he leaves his post.
There'll probably be an inquiry into just who was responsible, the culprit will get a pounds 500,000 golden handshake and the whole crazy tarradiddle will start again.
It's a fair bet that one of them will be receiving soccer's golden handshake soon, and the fact that George Burley is now available after quitting Hearts, having taken them to the top of the SPL, could speed up a decision.
A golden handshake of pounds 272,000 makes Neil Kinnock A FAT CAT and beneficiary of the EU subsidy system.
TONY Blair's last major trade union loyalist, Roger Lyons, who is TUC President, is being given a severance package -- pounds 250, 000 golden handshake and a pension of two thirds his salary -- to quit his union, Amicus, early after a bust-up with a rival.