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

  • risk management

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

  • compliance as a service (CaaS)

    Compliance as a Service (CaaS) is a cloud service service level agreement (SLA) that specified how a managed service provider (...

  • data protection impact assessment (DPIA)

    A data protection impact assessment (DPIA) is a process designed to help organizations determine how data processing systems, ...

SearchSecurity

  • quantum key distribution (QKD)

    Quantum key distribution (QKD) is a secure communication method for exchanging encryption keys only known between shared parties.

  • identity theft

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

  • cybercrime

    Cybercrime is any criminal activity that involves a computer, networked device or a network.

SearchHealthIT

SearchDisasterRecovery

  • disaster recovery plan (DRP)

    A disaster recovery plan (DRP) is a documented, structured approach that describes how an organization can quickly resume work ...

  • business continuity plan (BCP)

    A business continuity plan (BCP) is a document that consists of the critical information an organization needs to continue ...

  • disaster recovery team

    A disaster recovery team is a group of individuals focused on planning, implementing, maintaining, auditing and testing an ...

SearchStorage

  • logical unit number (LUN)

    A logical unit number (LUN) is a unique identifier for designating an individual or collection of physical or virtual storage ...

  • NVMe over Fabrics (NVMe-oF)

    NVMe over Fabrics, also known as NVMe-oF and non-volatile memory express over fabrics, is a protocol specification designed to ...

  • CIFS (Common Internet File System)

    CIFS (Common Internet File System) is a protocol that gained popularity around the year 2000, as vendors worked to establish an ...

Close