Golden Handcuffs
Incentives offered to key employees to retain them during and after an M&A transaction, often including bonuses or stock options that vest over time.
Implications
Financial incentives, such as stock options or bonuses, designed to retain key employees by making it financially costly for them to leave the company, often used to secure the loyalty of top talent and align their interests with the company's success.
Example
Example: A tech company offers its top executives golden handcuffs in the form of stock options that vest over five years, encouraging them to stay with the company and contribute to its long-term growth.
Related Terms
Different from golden parachutes, which provide financial compensation to executives in the event of a company takeover or termination, golden handcuffs are intended to retain employees by making it financially advantageous for them to remain with the company.
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