Hiring great people is hard. Keeping them? Even harder—especially when bigger companies, recruiters, or even competitors come knocking with fat offers.
That’s where “golden handcuffs” come in.
These are smart, long-term incentives designed to reward loyalty, align employee success with business success, and make it tough to walk away without leaving serious value on the table.
Here are 7 powerful ways to create golden handcuffs in your business—plus how we help bring them to life.
“You’ll earn it now, but get paid later—if you stick around.”
These plans let you delay bonus payments or salary deferrals until a future date (say, 5 years or retirement). The employee doesn’t pay taxes until they receive the money, and the business keeps control of the funds until then.
🔒 Golden Handcuff: Leave early, and the payout is forfeited.
✅ Ideal for: Owners, executives, and highly compensated employees.
“Hit the target and stay the course—you’ll share in the win.”
LTIPs offer big upside if employees meet long-term performance goals. This could be a bonus, a phantom equity payout, or a profit-sharing agreement that vests over time.
🔒 Golden Handcuff: The reward comes after the finish line.
✅ Ideal for: Sales leaders, division heads, or anyone tied to performance milestones.
“As the business grows, your share grows—literally.”
Employees get the right to buy shares (options) or receive shares outright (restricted stock), but they must stay long enough to vest. These are common in fast-growth companies or businesses preparing for sale.
🔒 Golden Handcuff: Unvested equity disappears if they leave.
✅ Ideal for: Key early hires, leadership team, succession planning.
“We’ll bonus you for staying—but not all at once.”
Instead of a one-time bonus, structure a retention payment that is earned over 12, 24, or 36 months. You can pay a portion each year or deliver it all at the end.
🔒 Golden Handcuff: Walk away early, and you leave bonus money on the table.
✅ Ideal for: Transitional times (M&A, owner exit, expansion phase).
“You’ll appreciate the match more… when it’s fully yours.”
A standard 401(k) plan becomes a retention tool when you stretch the employer match vesting schedule over 3 to 6 years. It’s still a great benefit—but it rewards those who stay.
🔒 Golden Handcuff: Leaving early means giving up part of the employer match.
✅ Ideal for: All employees, especially those in high-turnover roles.
“We’ll fund a life insurance plan you’ll own—if you earn it.”
You use life insurance as a long-term reward. The business pays the premium; the employee owns the policy. You can structure it so ownership transfers after a certain tenure.
🔒 Golden Handcuff: No vesting, no ownership.
✅ Ideal for: High-level team members or partners with family legacy goals.
“You don’t get real shares—but you get real money as if you did.”
You give employees a share of the business’s growth without giving up actual equity. These payouts typically track your company’s valuation or profits and are paid out in cash after a certain time.
🔒 Golden Handcuff: No payout unless you stay and the business grows.
✅ Ideal for: Founders who want to retain control but reward loyalty.
That’s where we come in.
As a fiduciary advisor working with business owners, our job is to:
You don’t need to turn your company into Google or give away equity like candy to retain great people. You just need a thoughtful, well-structured plan—and someone to help you implement it.
