Legal Definitions - golden handshake

A golden handshake is a type of compensation package that is offered to an employee, usually as an incentive to retire or upon dismissal. It is a generous amount of money given to the employee as a form of severance pay.

• When the company downsized, the employees who were laid off were given a golden handshake to help them transition to a new job.
• After working for the company for 30 years, the CEO was given a golden handshake as a retirement gift.

These examples illustrate how a golden handshake is used as a way to compensate employees who are leaving the company. It is a way to show appreciation for their years of service and to help them financially during the transition to a new job or retirement.