Drive Your Career: Golden Handcuffs

“The last 3 years we have built and executed on a program that has met all its endpoints. We appear to be in great shape for pending approval, and my heavy lifting is done. I am ready for my next challenge, however, walking away before the end of the year would mean leaving my stock and extra bonuses valued over 400k. I want to look at this opportunity, but I can’t afford to leave.”

The individual I chatted with this week is in the proverbial situation commonly called, The Golden Handcuffs.  A collection of financial incentives, ranging from higher than market salary, bonuses, and equity, are all forms of retention tools put in place to hold on to employees where their transition could impact the overall health of the company. The challenge lies with the individual that is underutilized and overcompensated. 

At what risk is our career by staying in a role solely for the money?

As we drive our career over a lifetime, it may help to think of your marketable skills on one side of a simple graph, and the compensation you receive on another. When your marketable skills go up, and compensation rises, it is a natural accumulation for you that you can build on moving forward. However, when a company pays you over market while your marketable skills stagnate, a gap can be created between you and future opportunities that may be challenging to bridge. 

If you find yourself in this situation, keep these thoughts in mind. 

1. Get a clear picture of important eligibility dates and payoff expected.  Understand exactly what you are eligible for, what is certain, and what is at risk. There may be creative ways new opportunities can entice you, but it is up to you to understand the specifics of where you stand.

2. Be proactive in communication with your leadership team. You are likely being retained because you have done a great job. If there are incentives for you around certain timelines, and it is clear your value to the organization will be diminishing, approach a trusted mentor for a discussion. Perhaps there are internal projects on the horizon that you can take on that will benefit the organization. This could also open up conversation around accelerated vesting or bonus payout as your salary may not be logical for the company long term.   Stay as close to the decision makers around your career development as possible without putting yourself at risk.

3. Get your financial situation in order.  If your marketable salary is lower than where you currently are being paid, plan accordingly. Pad your savings and start thinking about what adjustments can be made once you make a change. Freedom and power can come from this exercise. Elon Musk claims his extreme budget gave him the clarity and the power to take the career risks long before he became a billionaire.  

4. Keep learning. If your work is in a lull, make time to keep facilitating your own growth. Reading, take a class, volunteer, attend meetings, whatever you can do to stay close to where your industry is heading will keep you sharp to leverage in your next opportunity.

There is nothing wrong with reaping the rewards of excellent work with financial remuneration. What we need to stand guard at is the time remaining idle.  Do not lose sight of short and long term career goals. Keep learning and growth at the center of your daily decisions, and plan financially for the reality of your market worth when it is time to make that move.