Generally, any on-off payment made by way of compensation for a legal claim. – The usually one-off payment in cash made by an employer to an employee who is terminated or laid off. – In Germany, the severance payment – known as „fixation“ – was regulated in detail in the event of dismissal from the civil service on the basis of the German Reich’s Staff Reduction Ordinance of October 27, 1927. According to this regulation, departing Reich civil servants could receive up to eight times their annual salary as severance pay. – In particular, very high payments to top level executives of companies who have to leave office due to incompetence or mismanagement (golden handshake, money shake). – See severance pay, agency problem, cash compensation, welcome money, detraction, dismissal money, money shake, sleeping money.

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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
E-mail address: info@ekrah.com
https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk
https://www.jung-stilling-gesellschaft.de/merk/
https://www.gerhardmerk.de/

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