Definition of Golden handshake:
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 Nabisco paid F. Ross Johnson over $53 million as part of a golden handshake clause. Some contracts, along with compensation, include non-competition clauses, which state that the employee is not allowed to open a competing business for a specified period of time after they are terminated.
A payment given to someone who is laid off or retires early.
A golden handshake is a stipulation in an employment agreement which states that the employer will provide a significant severance package if the employee loses their job. It is usually provided to top executives in the event that they lose employment because of retirement, layoffs or for negligence. However, payment can be made in several ways, such as cash or stock options.
Generous bonus offered to a director, employee, or partner as a severance payment, or an inducement to leave the firm without making a fuss or creating a controversy. See also golden boot.
How to use Golden handshake in a sentence?
- He got a golden handshake from the company after being told to leave because they did not want him to tell anyone about their company secrets.
- While they golden handshake was generous, Steve was still disapointed that he was being forced out of the company. But on the bright side, he had a nice amount of money to go on that European vacation he always dreamed of.
- Payment can be made in cash, stock options, or anything else accepted in the contract.
- Golden handshakes are pre-negotiated employment agreements that provide a severance if the employee were to involuntarily leave their position early.
- John Smith left ABC Company with a 200k golden handshake and a promise to keep quiet about the asbestos he discovered in the warehouse.
- Sometimes low-level employees receive a smaller version of the golden handshake.
- Golden Handshakes are often controversial and can cause upset in the general public.
- Golden Handshakes often come with non-compete clauses.
Meaning of Golden handshake & Golden handshake Definition