Omar Morales, an older employee, is considering an early retirement package that his employer has offered; it includes improved benefits and cash bonuses. Which of the following applies to this inducement?

Question

Quizplus · Accepted Answer

The inducement offered to Omar Morales is called a silver handshake. This is a retirement package offered to older employees that typically includes enhanced benefits and cash bonuses. It is designed to incentivize early retirement and reduce the number of employees while offering attractive options for those who choose to leave. A golden parachute is typically an arrangement in which top executives receive generous benefits if there is a change in ownership or control of the company. Severance pay is a type of compensation provided to employees who are laid off or terminated without cause. There is no common term known as a platinum cushion.

Omar Morales, an Older Employee, Is Considering an Early Retirement