Golden Handshake

Definition: a Golden Handshake is a form of employee benefits or executive compensation, 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.

More on golden handshakes. More on compensation and benefits: Broadbanding, Competency-based Pay, Employee Benefits, Executive Compensation, Golden Handcuff, more...