Golden Handshake

What is Golden Handshake?

Golden Handshake is a payout to management staff when he or she retires. 
Normally he or she will be a keyman for the company.  

Who normally gets the Golden Handshake?

Normally those management staff such as managing director, directors, general
managers and senior managers who has contributed substantially to the well-being
of the company by their good leadership.

How to fund the Golden Handshake?

It can be funded by the company if it has a deep pocket.  Or a life insurance policy
can be taken out on the life of the employee.  In the event of retirement, the policy can
be assigned back to him or her or it can be cashed out and the money is given to him or
her as golden hqndshake, 

Initially, a life policy is taken out on the life of a keyman and can be treated as keyman insurance. 
If nothing happens, then it can become a golden handshake for the keyman.

Various compliances of the Company Act are required -- e.g. your company secretary will need
to pass a resolution to approve the golden handshake arrangement by shareholders.

You may have to tweak the employment agreement with the said keyman to include Golden
Handshake  as part of his compensation stating clearly the terms and condition for the Golden
Handshake entitlement.

Complete the form below if you want to structure a Golden Handshake for your company.