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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.

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