:: COMPARE ::
The short answer
A parachute pays out ON exit. Handcuffs penalise exit. Same family of compensation design, pointing in exactly opposite directions — and executives often have both.
Side by side
| Aspect | Golden handcuffs | Golden parachute |
|---|---|---|
| Pays when | You stay | You leave |
| Purpose | Retention | Protection |
| Who has them | Many | Executives |
| Effect on risk | Raises it | Lowers it |
What each one means
Compensation arranged so that leaving costs you money — unvested equity, deferred bonuses, clawbacks, or pay and benefits pitched higher than any rival would match. Retention bought with money rather than with satisfaction.
Full definition of Golden Handcuffs →The contrast above sets out how Golden parachute differs from Golden Handcuffs on the points that actually matter.