Typically, "golden handshakes" are offered only to high-ranking executives by major corporations 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 financial position. Their use has caused some investors concern since they do not specify that the executive had 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 laid off.
TANAISTE Mary Coughlan approved a 'golden handshake' payment worth almost '1.1m for former FAS chief Rody Molloy without taking legal advice.
Sep 25, 2009; Coughlan didn't take legal advice on '1m deal New row over 'golden handshake' payoff for former FAS chief Molloy Michael Brennan,...