Investor Glossary-golden handcuffsInvestor Glossary-golden handcuffsInvestor Glossary-golden handcuffsInvestor Glossary-golden handcuffsInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Golden Handcuffs

The HTML to link to this page
 

Golden handcuffs are various incentives offered to key executives to make sure they don't leave the company. Golden handcuffs can take several forms. For example, golden handcuffs may entail deferred compensation, under which pay for past services are postponed to some future date. Golden handcuffs can also involve stock options, which the executive cannot exercise until after some length of service to the firm. Another form of golden handcuffs is restricted stock, which is transferred to the executive but remains subject to forfeiture if the manager leaves the firm at an early date, or does not reach certain performance goals. Note that golden handcuffs are also sometimes part of an anti-takeover strategy adopted in mergers and acquisitions. Under this golden handcuffs scenario, key staff immediately become vested in stock options once the company is taken over. With their golden handcuffs thus removed, many key executives will want to quit the firm, leaving the new owners without the experienced talent they need to run the company. This unlocking of golden handcuffs serves as a poison pill to discourage takeover attempts.



Rate this golden handcuffs definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: average price per share, annual return, irrevocable trust, ex-dividend, inflation, open position, Zero Cost Collar, stock split, quality assurance, Key Rate Duration, deferred revenue, APR, reverse mortgage, minority interest, phantom income, debt service coverage, option premium, real GDP, LIBOR, balance sheet, 1035 exchange, diluted share, ex-dividend date, 144a, command economy, class C shares, cancelled check, in escrow, VIX, covered put, per diem, labor relations, required rate of return, FTSE, wholly-owned subsidiary, FICO score, limit order, implied volatility, dividends payable, liquidity ratio, retained earnings, EBITDA, deferred tax, stock market close, margin rate, current ratio, 401a, risk management, 1031 exchange


Home | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
Investor Glossary Index >>> # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
©2004-2014 Investor Glossary - All rights reserved - Terms of Use