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

SearchCompliance

  • California Consumer Privacy Act (CCPA)

    The California Consumer Privacy Act (CCPA) is legislation in the state of California that supports an individual's right to ...

  • compliance audit

    A compliance audit is a comprehensive review of an organization's adherence to regulatory guidelines.

  • regulatory compliance

    Regulatory compliance is an organization's adherence to laws, regulations, guidelines and specifications relevant to its business...

SearchSecurity

  • privilege creep

    Privilege creep is the gradual accumulation of access rights beyond what an individual needs to do his job. In IT, a privilege is...

  • BlueKeep (CVE-2019-0708)

    BlueKeep (CVE-2019-0708) is a vulnerability in the Remote Desktop (RDP) protocol that affects Windows 7, Windows XP, Server 2003 ...

  • endpoint detection and response (EDR)

    Endpoint detection and response (EDR) is a category of tools and technology used for protecting computer hardware devices–called ...

SearchHealthIT

SearchDisasterRecovery

  • disaster recovery team

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

  • cloud insurance

    Cloud insurance is any type of financial or data protection obtained by a cloud service provider. 

  • business continuity software

    Business continuity software is an application or suite designed to make business continuity planning/business continuity ...

SearchStorage

  • Hadoop as a service (HaaS)

    Hadoop as a service (HaaS), also known as Hadoop in the cloud, is a big data analytics framework that stores and analyzes data in...

  • blockchain storage

    Blockchain storage is a way of saving data in a decentralized network which utilizes the unused hard disk space of users across ...

  • disk mirroring (RAID 1)

    RAID 1 is one of the most common RAID levels and the most reliable. Data is written to two places simultaneously, so if one disk ...

Close