Golden Hello

DEFINITION of 'Golden Hello'

A signing bonus offered to a candidate from a rival company. 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.

BREAKING DOWN 'Golden Hello'

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. Following the financial crisis of 2008-2009, such compensation methods have become controversial.

RELATED TERMS
  1. Golden Boot

    An inducement or incentive for an older worker to "voluntarily" ...
  2. Golden Parachute

    Substantial benefits given to a top executive (or top executives) ...
  3. Stock Appreciation Right - SAR

    A right, usually granted to an employee, to receive a bonus equal ...
  4. Golden Life Jacket

    An exceptional compensation package offered by the acquiring ...
  5. Golden Handcuffs

    A collection of financial incentives that are intended to encourage ...
  6. Supplemental Executive Retirement ...

    A non-qualified retirement plan for key company employees, such ...
Related Articles
  1. Fundamental Analysis

    Mergers And Acquisitions: Understanding Takeovers

    In the dramatic world of M&As, battleground terms meld with bizarre metaphors to form the language of the game.
  2. Bonds & Fixed Income

    What Are Corporate Actions?

    Be a savvy investor - learn how corporate actions affect you as a shareholder.
  3. Executive Compensation

    How Restricted Stocks and RSUs Are Taxed

    Many firms pay a portion of their employees’ compensation in the form of restricted stock or restricted stock units.
  4. Personal Finance

    Don't Sign That Non-Compete Without Reading This

    Non-compete contracts aren't just for high-level execs these days. How to protect yourself if your employer – or prospective employer – insists you sign one.
  5. Economics

    Why Enron Collapsed

    Enron’s collapse is a classic example of greed gone wrong.
  6. Economics

    Understanding the American Dream

    The American dream is the belief that anyone, regardless of where they’re born or into what class, can attain their own version of success.
  7. Investing Basics

    Corporate Dividend Payouts And the Retention Ratio

    An investor can use dividend payout and retention ratios to gauge an investment’s possible return, and compare it to other stocks.
  8. Investing News

    How Banning Buybacks Would Help the Economy

    Stock buybacks are popular, but they're not helping the economy. Here's what would happen if they were banned.
  9. Credit & Loans

    Just Hired? How to Navigate Your New Job Benefits

    Being new at a workplace is nerve-wracking enough. Here's what to do first after you've been hired to better navigate complicated benefits plans.
  10. Economics

    How Leadership Impacts Investments

    Investors often overlook a company’s leadership when evaluating an opportunity, but it’s an important quality to consider.
RELATED FAQS
  1. Can LLCs have employees?

    A limited liability corporation (LLC) can have an unlimited number of employees. An employee is defined as any individual ... Read Full Answer >>
  2. Do flexible spending accounts (FSA) funds roll over?

    An individual can utilize an employer’s cafeteria plan of employee benefits to establish a flexible spending account (FSA). ... Read Full Answer >>
  3. How do mutual fund managers make money?

    Mutual fund managers get base salaries, which vary greatly depending on the size and pedigree of the fund company. They may ... Read Full Answer >>
  4. What protections are in place for a whistleblower?

    Whistleblowers can play a critical role in ensuring the compliance, safety, honesty and legal fairness of governments and ... Read Full Answer >>
  5. Does my employer's matching contribution count towards the maximum I can contribute ...

    Contributions to 401(k) plans come from employee salary deferral and employer match dollars. According to the IRS, employees ... Read Full Answer >>
  6. How is marginal propensity to save calculated?

    Marginal propensity to save is used in Keynesian macroeconomics to quantify the relationship between changes in income and ... Read Full Answer >>
Hot Definitions
  1. Short Selling

    Short selling is the sale of a security that is not owned by the seller, or that the seller has borrowed. Short selling is ...
  2. Harry Potter Stock Index

    A collection of stocks from companies related to the "Harry Potter" series franchise. Created by StockPickr, this index seeks ...
  3. Liquidation Margin

    Liquidation margin refers to the value of all of the equity positions in a margin account. If an investor or trader holds ...
  4. Black Swan

    An event or occurrence that deviates beyond what is normally expected of a situation and that would be extremely difficult ...
  5. Inverted Yield Curve

    An interest rate environment in which long-term debt instruments have a lower yield than short-term debt instruments of the ...
  6. Socially Responsible Investment - SRI

    An investment that is considered socially responsible because of the nature of the business the company conducts. Common ...
Trading Center