DEFINITION of 'Golden Boot'

An inducement or incentive for an older worker to "voluntarily" retire. Typically such an inducement carries a large financial reward. Such packages often include cash as well as stock options. The term "golden boot" is a play on "golden parachute" except, instead of a soft landing, the departing employee is given a soft nudge, or boot, out the door.

BREAKING DOWN 'Golden Boot'

Like the better-known "golden parachute," a golden boot typically offers a lucrative severance package. In general, it is designed to encourage older workers to voluntarily quit, so that younger workers can be hired. This is often desired due to the cost savings (longtime employees typically command a higher salary) and because new technologies require new competencies. Of course, this entails either finding workers already possessing those competencies or retraining existing employees, which, once again, can be costly.

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