Golden handcuffs are financial incentives given to employees to discourage them from leaving a company. Employers offer incentives in order to retain individuals that have performed well for the company or those that have exceptional or irreplaceable skills.
Golden handcuffs can include:
Base salary, Stock options, Annual bonuses, Benefits, Company cars, Tuition assistance, Supplemental executive retirement plans (SERPs), Vacation homes, Insurance policies, and Contractual obligations.
The benefits are often deferred, requiring employees to stay with the organization for a longer period of time. The benefits are also so attractive that employees may not want to leave because they know they can't find a similar compensation package elsewhere. However, some say that golden handcuffs can trap workers in jobs they hate in exchange for rich paydays and luxury perks.
The term "golden handcuffs" originated in 1976, when Wall Street bankers' salaries began to outstrip those of the average private-sector worker.
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That was the primer...now check dis out!!!
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Employees at AI chipmaker Nvidia are expected to be at their desks seven days a week and often until 2 a.m. — but workers are loath to leave due to the company’s generous pay package, according to a report.
Ten people who either worked at the company or are still employed there described the environment as a pressure cooker in which meetings often descend into shouting matches, according to Bloomberg News.
A former marketing employee at Nvidia told Bloomberg News that she would often attend up to 10 meetings per day — each of them involving more than 30 people.
3Current and former employees at Nvidia described a grueling work environment that entails long hours and shouting matches.
The meetings would be characterized by shouting and fighting, but employees put up with it because of the “golden handcuffs,” according to the ex-staffer.
Nvidia, the Santa Clara, Calif.-based maker of semiconductors used to power artificial intelligence technology, boasts a relatively low worker attrition rate due to the fact that its employees are given stock grants that typically vest over a four-year period.
Since 2019, Nvidia’s stock has surged by 3,776% — meaning employees who have been working at the company for the past five years are likely to be millionaires.
3Nvidia co-founder and CEO Jensen Huang has steered the company during a period when its stock price has soared by more than 3,700%.AP
The company has become the dominant chipmaker as demand for its semiconductors has grown in parallel with the rise of artificial intelligence.
According to Bloomberg News, the stock compensation package is a powerful incentive for employees to withstand the grind and remain at the company.
Last year, 5.3% of employees left Nvidia. But after the company’s market capitalization exceeded $1 trillion, the rate of worker attrition fell to just 2.7%.
In the semiconductor industry, the rate of employee turnover is much higher — 17.7%, according to Nvidia.
A former engineer at Nvidia told Bloomberg News that those who have been with the company for a decade have more than enough money to retire, but instead are choosing to work more because of a larger windfall that awaits them when the next stock grant vests.
The former engineer also said he would often hear newly minted multimillionaire employees at the company brag about new vacation homes they were buying.
He told Bloomberg News that it was also routine to see many of them snap up tickets for events such as the Super Bowl and the NBA Finals.
Nvidia’s employee parking lot is also full of high-end cars such as Porsches, Corvettes and Lamborghinis, according to Bloomberg News.
3A real estate agent based in nearly Palo Alto, Calif., told Bloomberg News that he has worked with several Nvidia employees — some of whom make down payments of between 40% and 60% on homes worth millions of dollars.
Jensen Huang, Nvidia’s co-founder and chief executive officer, told CBS’s “60 Minutes” in an interview that he pushes employees hard because “if you want to do extraordinary things, it shouldn’t be easy.”
The Post has sought comment from Nvidia.
Nvidia employees can work 7 days a week until 2 a.m. — but few leave because of AI chip giant’s lavish pay: report
Ten people who either worked at the company or are still employed at the firm described the environment as a pressure cooker.
nypost.com
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