What is the term for a financial agreement that incentivizes a CEO to stay post-acquisition?

The term for a financial agreement that incentivizes a CEO to stay post-acquisition is "golden handcuff." This concept is designed to retain key executives by offering them financial benefits that are contingent upon their continued employment with the company. These benefits can take various forms, such as stock options, bonuses, or other compensatory packages that may be forfeited if the executive leaves the company. The intent is to align the interests of the executive with the long-term success of the new company after an acquisition, encouraging them to remain in their position and contribute to the transition and integration process.

In contrast, a "golden parachute" refers to a financial package given to executives if they are terminated, particularly in the event of a merger or acquisition, rather than encouraging them to stay. Similarly, a "golden handshake" typically refers to a severance agreement that provides a significant payout to an executive upon their departure. "Golden life jacket," while not widely recognized, would generally not apply in this context either. Overall, the golden handcuff is specially designed to motivate a CEO to remain onboard after significant organizational changes.