Browse Definitions :
Definition

golden handcuffs

Contributor(s): Ivy Wigmore

Golden handcuffs are a type of financial incentives designed to motivate employees to stay with a company longer than they might otherwise do. 

Golden handcuffs agreements are often part of an employment contract. In a more general context, the term "golden handcuffs" is used to refer to salaries that are lucrative enough to prevent highly-valued  employees from seeking positions elsewhere. The practice is most common for executive-level employees for whom there is likely to be competition. 

The financial incentives are usually expressed in a formal document as a specific amount of money and/or some other type of benefit, to be disbursed at specified points throughout a contractually-mandated time period. Bonuses and stock options that will vest in the future are common examples of financial incentives. 

The agreement may also stipulate penalties in the event that an employee leaves the company ahead of the contracted date, such as requiring repayment of bonuses. Other constraints may include non-disclosure agreements (NDA), which prevent the employee from divulging sensitive corporate information and non-compete clauses (NCC), which prevent the employee working for competitors if they do leave the company. 

See also: severance agreement, severance package, voluntary severance package, professional emancipation

This was last updated in September 2013

Start the conversation

Send me notifications when other members comment.

Please create a username to comment.

-ADS BY GOOGLE

File Extensions and File Formats

Powered by:

SearchCompliance

  • PCI DSS (Payment Card Industry Data Security Standard)

    The Payment Card Industry Data Security Standard (PCI DSS) is a widely accepted set of policies and procedures intended to ...

  • risk management

    Risk management is the process of identifying, assessing and controlling threats to an organization's capital and earnings.

  • compliance framework

    A compliance framework is a structured set of guidelines that details an organization's processes for maintaining accordance with...

SearchSecurity

  • Trojan horse (computing)

    In computing, a Trojan horse is a program downloaded and installed on a computer that appears harmless, but is, in fact, ...

  • identity theft

    Identity theft, also known as identity fraud, is a crime in which an imposter obtains key pieces of personally identifiable ...

  • DNS over HTTPS (DoH)

    DNS over HTTPS (DoH) is a relatively new protocol that encrypts domain name system traffic by passing DNS queries through a ...

SearchHealthIT

  • telemedicine (telehealth)

    Telemedicine is the remote delivery of healthcare services, such as health assessments or consultations, over the ...

  • Project Nightingale

    Project Nightingale is a controversial partnership between Google and Ascension, the second largest health system in the United ...

  • medical practice management (MPM) software

    Medical practice management (MPM) software is a collection of computerized services used by healthcare professionals and ...

SearchDisasterRecovery

SearchStorage

  • M.2 SSD

    An M.2 SSD is a solid-state drive (SSD) that conforms to a computer industry specification and is used in internally mounted ...

  • kilobyte (KB or Kbyte)

    A kilobyte (KB or Kbyte) is a unit of measurement for computer memory or data storage used by mathematics and computer science ...

  • virtual memory

    Virtual memory is a memory management capability of an operating system (OS) that uses hardware and software to allow a computer ...

Close