A
golden handshake is a
clause in an
executive employment contract that provides the executive with a significant
severance package in the case that the executive loses his or her job through
firing,
restructuring, or even scheduled
retirement. This can be in the form of
cash,
equity, and other benefits, and is often accompanied by an accelerated
vesting of
stock options. According to Investopedia, golden handshake is similar to, but more generous than a
golden parachute because it not only provides monetary compensation and/or stock options at the termination of employment, it includes the same severance packages executives would get at retirement.