Golden handcuffs

From Wikipedia, the free encyclopedia

Golden handcuffs are an incentive given to existing employees in the hope that they will decide to stay with the company.

[edit] Examples

Employee stock options
Often, much of the compensation received must be given back if the employee leaves for another company.
Golden handcuffs contract
A contract that ties a broker to a brokerage firm. If the broker stays at the firm, he or she will earn lucrative commissions, bonuses, and other compensation. But if the broker leaves and tries to lure clients to another firm, the broker must promise to give back to the firm much of the compensation received while working there. Golden handcuffs are a response by the brokerage industry to the frequent movement of brokers from one firm to another.