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.
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.