What are golden handcuffs?
Golden handcuffs are financial incentives — typically long-vesting equity grants, deferred bonuses, retention payments or non-compete-conditional compensation — designed to discourage key employees from leaving a company. The term reflects the dual nature: lucrative rewards bound to continued service.
Golden handcuffs are negotiated in employment offers and intensified in retention agreements at points of disruption (acquisition, restructuring, IPO). Their enforceability and tax treatment vary by jurisdiction; non-compete and confidentiality components must comply with local labour and competition law.