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Aug 30Doug Smith

Buzzword of the Week: Golden Hello

Aug 30Doug Smith

We’ve all heard of the Golden Parachute, which some executives are able to wangle from their employer and which leaves them quite wealthy if they are terminated from their position.

Well, according to Investopedia, there’s a related term for executives who are lured away from their company to work for a rival. It’s called the Golden Hello.

Unlike a typical signing bonus, a golden hello is specifically designed to entice employees of competing firms to leave. A golden hello is more likely to be extended to executive-level employees than to lower-level employees.  A golden hello signing bonus may run into the millions of dollars. This is a calculated risk by the hiring company, as they hope that the value and knowledge that the poached executive brings will exceed the cost of the bonus.

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