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 their 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. According to Investopedia, a golden handshake is similar to, but more generous than a golden parachute because it not only provides monetary compensation and/or stock options at the termination of employment, but also includes the same severance packages executives would get at retirement.

Handshake

A handshake is a globally widespread, brief greeting or parting tradition in which two people grasp one of each other's hands, and in most cases, it is accompanied by a brief up-and-down movement of the grasped hands. Customs surrounding handshakes are specific to cultures. Different cultures may be more or less likely to shake hands, or there may be different customs about how or when to shake hands.

Gold (color)

Gold, also called golden, is a color tone resembling the chemical element gold.

golden handshake

Noun

1. A generous severance payment, especially as an inducement to leave employment.