Golden Handcuffs

May 23, 2019 by James Woolfenden

A financial incentive that discourages Founders and/or key employees from leaving a company before certain milestones or an Exit Event. This could be a cash bonus or, more tax-efficient, Share Options and Growth Shares. When the Founder or employee leaves, Share Options which are still Vesting will lapse and most Growth Shares can be bought back at a much reduced value.