Golden Handshake

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, firing or even retirement. Payment can be made several ways, such as cash, or stock options.

Sometimes these golden handshakes are for millions of dollars, which makes them a very important issue for investors to consider. For example in 1989, R.J. Reynolds Tobacco-Nabisco paid F. Ross Johnson over $53 million as part of a golden handshake clause severance compensation. Some contracts, along with compensation, include non-competition clauses that state that once employment is terminated the employee is not allowed to open a competing business for a specified period of time.

Investment dictionary. . 2012.

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  • 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 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.… …   Wikipedia

  • 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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