Golden Handshake

Golden Handshake – A golden handshake is a significant bonus or severance package that is typically offered to a high ranking executive, director or partner within a firm.   The golden handshake can take the form of a clause in the employment contract prior to employment, or it can be a “buy-out” condition in the event that executive retires, or is fired, or is the victim of company restructuring.  Since some executives assume a large risk to their reputations when running multi-million dollar enterprises, the golden handshake is not unusual.  It also can assure that if an executive is asked to leave, they leave quietly.