Golden Handcuffs

Golden Handcuffs – Golden handcuffs are techniques, rewards or strategies, and sometimes penalties that a company uses when it desires to discourage an employee, such as a director or manager from exiting the company.  Some of the incentives that a company may use to induce a valuable employee to continue in his or her job are:  increased salary, bonuses, stock-options, additional benefits, vacation time, and other luxuries, such as a car and entertainment expense reimbursement.  Some penalties may include lost of stock options or pension if the employee terminates the employment contract early.