Golden handcuffs

Also called: golden handcuffs

In one line

Unvested or illiquid equity so valuable that it discourages an employee from leaving.

In plain English

When a big chunk of your wealth is tied up in equity that only pays off if you stay (or wait for an exit), leaving means forfeiting it — the 'golden handcuffs' that keep you put.

If you were explaining it to a 5-year-old

You've been promised so much chocolate for staying that you don't want to leave the club and lose it.

Why it matters when you sell

Golden handcuffs are exactly why employees seek secondaries — turning some locked-up paper into cash reduces the pressure to stay.

Put it to use

Concentration risk

Hold private-company shares? Our free estimator shows what your stake could be worth and whether you can sell — no sign-up. Value my equity (free) → · Back to the glossary →
When you're ready to go deeper, there's an optional Equity Toolkit and Report.

Sources

A general market-practice term. See how we define and source the glossary in our methodology. General information, not advice.

Educational information only — not financial, tax or legal advice, and not an offer to buy or sell any security. Definitions are general; your own documents and local law govern your situation. PrivateTechShares is independent and not a broker or marketplace.

Golden handcuffs

Related terms

Put it to use