golden handshake
golden handshake (idiom)
/ˈɡoʊldən ˈhændˌʃeɪk/
Meaning
- The expression is used to describe a generous severance package.
- A contractual agreement providing a substantial severance package to an executive upon termination, restructuring, or retirement.
- A clause in an executive’s contract that offers a significant sum of money and/or benefits if they lose their job or retire.
- A lucrative severance agreement offered to an employee upon departure from a company.
Example Sentences
- After decades of service, the CEO received a golden handshake upon retirement.
- The company offered a golden handshake to the departing executive during the merger.
- Facing restructuring, several senior managers were given a golden handshake to ease their transition.
- The board approved a golden handshake for the outgoing director to acknowledge his contributions.
- To encourage early retirement, the firm provided a golden handshake to eligible employees.
Origin and History
The term has been a part of corporate vernacular for several decades, and its origin is attributed to specific developments in the mid-20th century.
Coinage in the Mid-1960s
According to various sources, the term “golden handshake” originated in Britain during the mid-1960s. It is credited to Frederick Ellis, the city editor of the Daily Express, who coined the term to describe generous severance packages offered to departing executives.
Earliest Recorded Usage
The earliest known usage of “golden handshake” in print dates back to 1959, as documented by the Oxford English Dictionary (OED). The term appeared in The Times (London) in that year, indicating that the phrase was in use prior to the mid-1960s.
Alternative Theories
While the British origin is widely accepted, some sources suggest that the term may have originated in the United States, where it was used to describe generous severance packages given to top executives.
However, this theory is less substantiated compared to the British origin attributed to Frederick Ellis.
Evolution of the Term
Over time, the concept of the “golden handshake” has evolved and expanded globally. In the late 1990s, the term gained prominence in New Zealand due to controversies surrounding the departures of various state sector executives.
Additionally, related terms such as “golden parachute” and “golden handcuffs” have emerged, reflecting different aspects of executive compensation and retention strategies.
Variants
- Golden parachute: A substantial severance package for executives in the event of a company takeover.
- Golden handcuffs: Financial incentives designed to retain key employees within a company.
- Golden boot: An incentive package to encourage voluntary retirement or resignation.
Synonyms
- golden parachute
- severance package
- exit package
- separation agreement
- retirement package
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