The experience that follows an agreement of this sort may be draining and abhorrent, which is why the contract must be thoroughly analysed and thought about until an intelligent conclusion or compensation, that benefits both the company and the employee, is agreed upon.
These sort of agreements might potentially impose penalties if the employee decides to leave the company before the contracted date, such as the repayment of bonuses.
Golden handcuffs constitute one of several ways to stop companies' key employees leaving, making it essentially financially unprofitable for them to walk away from their employers.
[9] Unlike many other types of employer benefits, a SERP usually is not required to be offered to all employees, nor are there contribution limits established by the Internal Revenue Service.
[10] These limitations diminish the volume of benefit that some highly paid employees profit from amounts they might differently be able to gain without these constraints.