Golden Handshake

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Description of Golden Handshake. Explanation.

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Definition Golden Handshake. Description.


A Golden Handshake is a form of Employee Benefits, wherein a large payment made by a company to a senior executive is done upon termination of employment (retirement) before his/her contract ends.


It is a clause in an executive employment contract that provides the executive with a lucrative severance package in the event of their termination. May include a continuation of salary, bonus and/or certain benefits and perquisites, pension allowance, as well as accelerated vesting of stock options.


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Compare with: Golden Handcuff  |  Golden Hello  |  Golden Parachute  |  Employee Stock Ownership Plan  |  Employee Stock Options  |  Phantom Stock Plan  |  Incentives

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