Definition Definition

Golden Handcuffs

The rational behind plans that defer compensation forms the basis for another type of executive compensation called golden handcuffs. Golden handcuffs refer to either a restricted stock plan, where the stock compensation is deferred until vesting time provisions are met, or to bonus income deferred in a series of annual installments.

Golden handcuffs are a benefit program that makes it too costly for an executive to leave a company, because of benefits that would be forfeited.

Share it: CITE

Related Definitions