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 termination;
• Payment of a fixed sum in the event of employer repudiation or non-renewal of a contract; or
• The option to resign and claim a fixed sum in the event of a change of control of the company because of a takeover.
Such clauses run the risk of being void as a penalty if they are payable on breach of contract and do not genuinely pre-estimate the loss that an employee may suffer. Approval of such clauses by directors may also fall foul of their fiduciary duty to act in good faith in the best interests of the company. See also golden hello and golden handcuffs.
Related links

Practical Law Dictionary. Glossary of UK, US and international legal terms. . 2010.

Look at other dictionaries:

  • 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 — 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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