Agreement in employment contracts with senior executives, also in the financial sector, that they will receive a large sum in cash or other form upon leaving. Originally intended as a bonus for the risk of sudden changes in the context of mergers and acquisitions (in the case that the executive loses their job through restructuring), members of the Board of Management who were dismissed for apparent inability or obvious deficiencies were also given a golden handshake. This led to widespread public censure and did lasting damage to the image of the managers (“rivets in pinstripes”; bunglers in pinstriped suits). – See bonus, dividend, Irish, money burning, lemons problem, million grave, employee accountability, bonus, refactoring, sleeping money, boardroom coup, bonus, deadwood, compensation, executive pay.
Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent!
University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
E-mail address: info@ekrah.com
https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk
https://www.jung-stilling-gesellschaft.de/merk/
https://www.gerhardmerk.de/