Golden handshake
A golden handshake is the financial compensation an employee receives when leaving a company (voluntarily or involuntarily), usually in the form of a one-time large payout. This payment is intended to compensate for the loss of the job and to recognize the services the employee has provided. Golden handshakes are often used in reorganizations, mergers, or acquisitions where employees are laid off or encouraged to leave voluntarily. They are primarily used with senior executives, but can also be offered to other employees depending on the business situation and employment contract.
The idea of a golden handshake
The role of a golden handshake is to ease a transition for the employee, provide financial security and, in some cases, avoid further legal action. It also helps maintain a positive image of the company. Golden handshakes are encountered in a wide range of industries. The golden handshake softens the impact of dismissal and supports a smooth transition.
