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Golden handshake

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248:. Top executives often reap tremendous monetary benefits when a government owned or non-profit entity is sold to private hands. Just as in the example above, they can facilitate this process by making the entity appear to be in financial crisis – this reduces the sale price (to the profit of the purchaser), and makes non-profits and governments more likely to sell. Ironically, it can also contribute to a public perception that private entities are more efficiently run, thus again reinforcing the political will to sell off public assets. Again, due to 2259: 100: 82:
financial position. Their use has caused some investors concern since they do not specify that the executive has to perform well. In some high-profile instances, executives cashed in their stock options, while under their stewardship their companies lost millions of dollars and thousands of workers were
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that can sometimes be in the hundreds of millions of dollars for one or two years of work. (This is nevertheless an excellent bargain for the takeover artist, who will tend to benefit from developing a reputation of being very generous to parting top executives). This is just one example of some of
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and may entail a value measured in millions of dollars. Golden handshakes are given to offset the risk inherent in taking the new job, since high-ranking executives have a high likelihood of being fired and since a company requiring an outsider to come in at such a high level may be in a precarious
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artist gains a windfall from the former top executive's actions to surreptitiously reduce share price. This can represent tens of billions of dollars (questionably) transferred from previous shareholders to the takeover artist. The former top executive is then rewarded with a golden handshake for
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transactions to make the company's profitability appear temporarily poorer, or simply promote and report severely conservative (e.g. pessimistic) estimates of future earnings. Such seemingly adverse earnings news will be likely to (at least temporarily) reduce share price. (This is again due to
252:, policy makers and the general public see a government owned firm that was a financial 'disaster' – miraculously turned around by the private sector (and typically resold) within a few years. 67:
because it not only provides monetary compensation and/or stock options at the termination of employment, but also includes the same severance packages executives would get at retirement.
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A reduced share price makes a company an easier takeover target. When the company gets bought out (or taken private) - at a dramatically lower price - the
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for top executives to facilitate the sale of the company they are managing by artificially reducing its stock price.
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information asymmetries, since it is more common for top executives to do everything they can to
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It is fairly easy for a top executive to reduce the price of their company's stock due to
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The term originated in Britain in the mid-1960s. It was coined by the city editor of the
63:. According to Investopedia, a golden handshake is similar to, but more generous than a 2098: 2062: 1926: 1815: 1795: 1668: 1632: 1519: 1501: 1432: 1068: 928: 908: 863: 764: 749: 234: 197: 2338: 2209: 2189: 1921: 1886: 1718: 1612: 1592: 1511: 1364: 1299: 973: 923: 898: 858: 853: 784: 630: 244:
Similar issues occur when a publicly held asset or non-profit organization undergoes
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What's the difference between a golden handshake and a golden parachute?
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employment contract that provides the executive with a significant
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in the case that the executive loses their job through
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List of countries by rate of fatal workplace accidents
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Exisle Publishing Limited. p. 113. 184:Learn how and when to remove this message 1989:Job losses caused by the Great Recession 666:Simultaneous recruiting of new graduates 2170:Credentialism and educational inflation 16:Contract clause for a severance package 2316: 2041:List of countries by unemployment rate 89: 397: 321: 216:their company's earnings forecasts). 934:Practice-based professional learning 122:adding citations to reliable sources 93: 1487:Workers' right to access the toilet 13: 14: 2350: 370: 2258: 2257: 1551:Corporate collapses and scandals 356:"Severance payout, trips probed" 338:"PM criticises Lotto king's pay" 98: 109:needs additional citations for 2051:Employment-to-population ratio 1423:Occupational health psychology 423: 348: 330: 315: 303: 289: 1: 2139:Works Progress Administration 2031:Unemployment Convention, 1919 1443:Personal protective equipment 991:Occupational Outlook Handbook 297:"Golden Handshake Definition" 282: 196:Golden handshakes may create 47:. This can be in the form of 2220:Psychopathy in the workplace 1393:Human factors and ergonomics 7: 2205:Narcissism in the workplace 1418:Occupational exposure limit 255: 10: 2355: 2134:Civil Works Administration 2016:Technological unemployment 1492:Workplace health promotion 944:Professional certification 641:Personality–job fit theory 2253: 2152: 2114:Guaranteed minimum income 2071: 1912: 1786: 1699:Organizational commitment 1651: 1543: 1510: 1373: 1298: 1175: 1097: 1031: 818: 740: 684: 534: 431: 2283:Aspects of organizations 1964:Involuntary unemployment 1525:Equal pay for equal work 1448:Repetitive strain injury 949:Professional development 939:Professional association 621:Letter of recommendation 2268:Aspects of corporations 2230:Slow movement (culture) 2109:Employer of last resort 2011:Structural unemployment 1949:Frictional unemployment 1388:Epilepsy and employment 1275:Performance-related pay 1209:National average salary 1122:996 working hour system 2334:Executive compensation 2278:Aspects of occupations 2084:Unemployment insurance 2036:Unemployment extension 2006:Reserve army of labour 1811:Constructive dismissal 1618:Sleeping while on duty 1583:Exploitation of labour 1465:Sick building syndrome 636:Person–environment fit 506:Independent contractor 380:Guinness World Records 360:The New Zealand Herald 342:The New Zealand Herald 250:asymmetric information 2288:Aspects of workplaces 2026:Unemployment benefits 2021:Types of unemployment 1959:Graduate unemployment 1853:Letter of resignation 1482:Workers' compensation 1475:Occupational fatality 979:Vocational university 579:Employment counsellor 205:information asymmetry 2094:Job creation program 1870:Mandatory retirement 1823:Employee offboarding 1643:Workplace incivility 1638:Workplace harassment 1413:Occupational disease 1408:Occupational burnout 1323:Disability insurance 1167:Workweek and weekend 1147:Retroactive overtime 969:Vocational education 884:Continuing education 722:Permanent employment 277:Voluntary redundancy 118:improve this article 43:, or even scheduled 1999:Recession-proof job 1994:Lists of recessions 1932:Economic depression 1880:Retirement planning 1761:Work–life interface 1598:Employee monitoring 1566:Corporate behaviour 1556:Accounting scandals 1438:Occupational stress 1428:Occupational injury 959:Reflective practice 954:Professional school 676:Work-at-home scheme 596:Induction programme 574:Employment contract 554:Business networking 324:Who Said That First 322:Cryer, Max (2010). 224:presiding over the 198:perverse incentives 90:Perverse incentives 2262:See also templates 2099:Job creation index 2063:Youth unemployment 1927:Discouraged worker 1816:Wrongful dismissal 1796:At-will employment 1669:Civil conscription 1633:Workplace bullying 1520:Affirmative action 1502:Workplace wellness 1433:Occupational noise 1069:Long service leave 929:Overspecialization 909:Induction training 864:Career development 390:) in February 1989 235:perverse incentive 133:"Golden handshake" 2311: 2310: 2210:Post-work society 2190:Kiss up kick down 1922:Barriers to entry 1887:Severance package 1719:Human trafficking 1613:Sexual harassment 1593:Employee handbook 1512:Equal opportunity 1375:Safety and health 1365:Take-home vehicle 974:Vocational school 924:Lifelong learning 899:Further education 859:Career counseling 854:Career assessment 631:Overqualification 344:. 31 August 1999. 239:golden parachutes 209:off balance sheet 194: 193: 186: 168: 33:severance package 2346: 2298:Critique of work 2293:Corporate titles 2261: 2260: 2180:Evil corporation 2046:Employment rates 1969:Jobless recovery 1937:Great Depression 1897:Golden parachute 1892:Golden handshake 1689:Job satisfaction 1679:Critique of work 1497:Workplace phobia 1328:Health insurance 1285:Wage compression 1253:Progressive wage 1107:35-hour workweek 1074:No call, no show 1064:Leave of absence 914:Knowledge worker 842:Master craftsman 646:Personality hire 584:Executive search 564:Curriculum vitae 549:Background check 418: 411: 404: 395: 394: 364: 363: 352: 346: 345: 334: 328: 327: 319: 313: 312:investopedia.com 307: 301: 300: 293: 267:Golden handcuffs 262:Golden parachute 189: 182: 178: 175: 169: 167: 126: 102: 94: 65:golden parachute 21:golden handshake 2354: 2353: 2349: 2348: 2347: 2345: 2344: 2343: 2314: 2313: 2312: 2307: 2303:Organized labor 2273:Aspects of jobs 2249: 2240:Toxic workplace 2175:Emotional labor 2148: 2072:Public programs 2067: 1984:Great Recession 1954:Full employment 1942:Long Depression 1908: 1806:Banishment room 1782: 1704:Refusal of work 1647: 1571:Corporate crime 1539: 1506: 1369: 1294: 1171: 1093: 1027: 904:Graduate school 814: 736: 680: 671:Underemployment 530: 474:Self-employment 449:Contingent work 439:Academic tenure 432:Classifications 427: 422: 384:F. Ross Johnson 373: 368: 367: 362:. 17 June 1999. 354: 353: 349: 336: 335: 331: 320: 316: 308: 304: 295: 294: 290: 285: 258: 231:principal-agent 190: 179: 173: 170: 127: 125: 115: 103: 92: 17: 12: 11: 5: 2352: 2342: 2341: 2336: 2331: 2326: 2324:Business terms 2309: 2308: 2306: 2305: 2300: 2295: 2290: 2285: 2280: 2275: 2270: 2264: 2263: 2254: 2251: 2250: 2248: 2247: 2242: 2237: 2232: 2227: 2225:Sunday scaries 2222: 2217: 2212: 2207: 2202: 2197: 2192: 2187: 2182: 2177: 2172: 2167: 2162: 2156: 2154: 2150: 2149: 2142: 2141: 2136: 2131: 2126: 2121: 2116: 2111: 2106: 2101: 2096: 2091: 2086: 2081: 2075: 2073: 2069: 2068: 2066: 2065: 2060: 2055: 2054: 2053: 2048: 2038: 2033: 2028: 2023: 2018: 2013: 2008: 2003: 2002: 2001: 1996: 1991: 1986: 1976: 1974:Phillips curve 1971: 1966: 1961: 1956: 1951: 1946: 1945: 1944: 1939: 1929: 1924: 1918: 1916: 1910: 1909: 1907: 1906: 1901: 1900: 1899: 1894: 1884: 1883: 1882: 1877: 1875:Retirement age 1872: 1862: 1857: 1856: 1855: 1845: 1840: 1835: 1830: 1828:Exit 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testing 559:Cover letter 499:Tradesperson 359: 350: 341: 332: 323: 317: 305: 291: 243: 218: 214:window dress 202: 195: 180: 171: 161: 154: 147: 140: 128: 116:Please help 111:verification 108: 79:corporations 76: 71: 69: 20: 18: 2124:Historical: 1848:Resignation 1788:Termination 1771:Slow living 1739:Truck wages 1724:Labour camp 1652:Willingness 1544:Infractions 1199:Living wage 1142:Remote work 810:Gold-collar 765:Pink-collar 760:Grey-collar 750:Blue-collar 717:Labour hire 692:Cooperative 656:Recruitment 611:Job hunting 544:Application 526:Wage labour 511:Labour hire 464:Job sharing 388:RJR Nabisco 272:Golden boot 2318:Categories 2058:Wage curve 1865:Retirement 1778:Workaholic 1756:Work ethic 1623:Wage theft 1608:Labour law 1603:Evaluation 1588:Dress code 1353:Sick leave 1318:Child care 1280:Salary cap 1194:Income tax 1157:Shift work 1089:Time clock 1084:Sick leave 1079:Sabbatical 1044:Break room 1032:Attendance 1001:Profession 986:Mentorship 964:Retraining 889:E-learning 785:New-collar 780:Red-collar 727:Supervisor 707:Internship 626:Onboarding 494:Technician 489:Journeyman 459:Gig worker 425:Employment 283:References 174:March 2013 144:newspapers 45:retirement 2245:Workhouse 2165:Busy work 1979:Recession 1843:Pink slip 1801:Dismissal 1664:Careerism 1258:Singapore 1236:Hong Kong 1099:Schedules 1018:Tradesman 919:Licensure 879:Education 849:Avocation 790:No-collar 770:Precariat 651:Probation 606:Job fraud 29:executive 2339:Payments 2153:See also 2079:Workfare 1904:Turnover 1300:Benefits 1181:salaries 1137:Overtime 1127:Flextime 1059:Gap year 1054:Furlough 1023:Vocation 1006:Operator 869:Coaching 824:training 702:Employer 697:Employee 601:Job fair 479:Side job 382:page on 256:See also 226:firesale 221:takeover 84:laid off 2129:U.S.A.: 1734:Peonage 1709:Slavery 1659:Boreout 1398:Karoshi 1348:Pension 1132:On-call 837:Artisan 521:Laborer 158:scholar 57:vesting 1833:Layoff 1383:Crunch 1241:Europe 1231:Canada 1219:Europe 820:Career 661:RĂ©sumĂ© 536:Hiring 444:Casual 378:- The 160:  153:  146:  139:  131:  53:equity 37:firing 27:in an 25:clause 1694:McJob 1214:World 1177:Wages 1039:Break 685:Roles 165:JSTOR 151:books 23:is a 1179:and 822:and 589:list 241:. 229:the 137:news 49:cash 712:Job 120:by 59:of 2320:: 358:. 340:. 233:/ 86:. 51:, 39:, 19:A 417:e 410:t 403:v 299:. 187:) 181:( 176:) 172:( 162:· 155:· 148:· 141:· 114:.

Index

clause
executive
severance package
firing
restructuring
retirement
cash
equity
vesting
stock options
golden parachute
corporations
laid off

verification
improve this article
adding citations to reliable sources
"Golden handshake"
news
newspapers
books
scholar
JSTOR
Learn how and when to remove this message
perverse incentives
information asymmetry
off balance sheet
window dress
takeover
firesale

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