Golden Handshake
A large sum of money or lucrative benefits given to an executive upon termination, often included in M&A deals as a severance package to encourage smooth transitions.
Implications
A financial arrangement in which an employee, typically an executive, is given a significant severance package upon departure from the company, often used to facilitate voluntary retirement or resignation, particularly in cases of restructuring or downsizing.
Example
Example: A large corporation offers its retiring CEO a golden handshake that includes a lump sum payment and extended benefits, allowing for a smooth leadership transition.
Related Terms
Different from golden handcuffs, which incentivize employees to stay, golden handshakes are designed to encourage employees to leave under favorable terms, often as part of an exit strategy.
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