3 ms·

Does anyone know if Tech companies do similar things to what banks and law firms do in terms of golden handcuffs?

chollida1 15y ago
I don't know specifically about tech companies but the hedge fund I work for will lend and match up to very large amounts of money that you put into the fund. It really helps to motivate you when you realize that most of your net worth is tied up in the fund:) Stock options to hot pre IPO companies like Facebook, twitter, etc are very similar. It's hard to leave before all your options vest( and they never do as you always get a new grant each year) as it's always in the back of your mind that the big IPO is just around the corner.
ahoyhere 15y ago
Absolutely, only it's more subtle. When you work at a company that feeds you gourmet lunches, does your oil changes and laundry for you, arranges shuttles from your apartment to the office, etc., you begin to feel like you couldn't possibly live any other way. That is the dark side of perks. Another way to keep people stuck is to pay them too much, much more than they could ever earn elsewhere. They will then rationalize that they are doing it just for the money, which leads them to hate their job, even tho they will not leave (because of the money). Then you see worsening politicking, squabbling, dark humor about "at least it pays well" and general "acting out." I saw both of these in action at my last real job, at a tech co. you've heard of. The wild parties, the liquor cabinet, the gourmet kitchen, the rooftop deck in TriBeCa, and more importantly, the excessively huge amounts of profit-sharing... it was like geek summer camp, until it turned into a teen drama because of the "poor little rich boys." I knew I could never work at another place after that, because (in most ways) it was just so great. We were all spoiled rotten.
- pspeter3 15y ago
  Thanks for the tips. I'll make sure to be cognizant of the perks I'm getting. Any advice on how to survive a workplace like that and keep your mind in reality?
  - evangineer 15y ago
    Referring back to the article, setting your own goals and having a gameplan for your career and finances that transcends your current gig and workplace.
- pacemkr 15y ago
  You seem to be talking about different things. I read "golden handcuffs" as extending a line of credit to employees to support and _encourage_ living beyond their actual means. This is very very different from being pampered and spoiled as you describe.
  - gaius 15y ago
    A line of credit? Never heard of that. Golden handcuffs are generally in the form of deferred bonuses, vesting periods, etc.
    - DavidAdams 15y ago
      This is much more common in finance and legal firms, where much of the upside accrues to partners in the firm, and the junior people work long hours for much more modest compensation. But they're loaned money in order to get a jump start on the lifestyle that their more senior colleagues enjoy, putting them in hock to the firm. If they were to leave to join a startup, for example, they'd have to pay it back in a lump sum.
    - pacemkr 15y ago
      From the article under number 4: "They encourage up-and-comers to spend extravagantly; they extend lines of credit to their rising stars. You need a big house with a jumbo mortgage; you cannot pull up to a business meeting in anything less than the best luxury car. It is part of their corporate culture."
  - ahoyhere 15y ago
    No, "golden handcuffs" are anything that seem like a good thing at the time but that prevent you from leaving. "Golden handcuffs are a system of financial incentives designed to keep an employee from leaving the company. These can include employee stock options that will not vest for several years but are more often contractual obligations to give back lucrative bonuses or other compensation if the employee leaves for another company." -- Wikipedia I would like to hear arguments about how a doubled salary, thanks to profit-sharing, does not count as a "system of financial incentives designed to keep an employee from leaving the company." It is merely the carrot and not the stick. (Does nobody Google any more?)

I don't know specifically about tech companies but the hedge fund I work for will lend and match up to very large amounts of money that you put into the fund. It really helps to motivate you when you realize that most of your net worth is tied up in the fund:) Stock options to hot pre IPO companies like Facebook, twitter, etc are very similar. It's hard to leave before all your options vest( and they never do as you always get a new grant each year) as it's always in the back of your mind that the big IPO is just around the corner.

ahoyhere 15y ago

Absolutely, only it's more subtle. When you work at a company that feeds you gourmet lunches, does your oil changes and laundry for you, arranges shuttles from your apartment to the office, etc., you begin to feel like you couldn't possibly live any other way. That is the dark side of perks. Another way to keep people stuck is to pay them too much, much more than they could ever earn elsewhere. They will then rationalize that they are doing it just for the money, which leads them to hate their job, even tho they will not leave (because of the money). Then you see worsening politicking, squabbling, dark humor about "at least it pays well" and general "acting out." I saw both of these in action at my last real job, at a tech co. you've heard of. The wild parties, the liquor cabinet, the gourmet kitchen, the rooftop deck in TriBeCa, and more importantly, the excessively huge amounts of profit-sharing... it was like geek summer camp, until it turned into a teen drama because of the "poor little rich boys." I knew I could never work at another place after that, because (in most ways) it was just so great. We were all spoiled rotten.

pspeter3 15y ago
Thanks for the tips. I'll make sure to be cognizant of the perks I'm getting. Any advice on how to survive a workplace like that and keep your mind in reality?
- evangineer 15y ago
  Referring back to the article, setting your own goals and having a gameplan for your career and finances that transcends your current gig and workplace.
pacemkr 15y ago
You seem to be talking about different things. I read "golden handcuffs" as extending a line of credit to employees to support and _encourage_ living beyond their actual means. This is very very different from being pampered and spoiled as you describe.
- gaius 15y ago
  A line of credit? Never heard of that. Golden handcuffs are generally in the form of deferred bonuses, vesting periods, etc.
  - DavidAdams 15y ago
    This is much more common in finance and legal firms, where much of the upside accrues to partners in the firm, and the junior people work long hours for much more modest compensation. But they're loaned money in order to get a jump start on the lifestyle that their more senior colleagues enjoy, putting them in hock to the firm. If they were to leave to join a startup, for example, they'd have to pay it back in a lump sum.
  - pacemkr 15y ago
    From the article under number 4: "They encourage up-and-comers to spend extravagantly; they extend lines of credit to their rising stars. You need a big house with a jumbo mortgage; you cannot pull up to a business meeting in anything less than the best luxury car. It is part of their corporate culture."
- ahoyhere 15y ago
  No, "golden handcuffs" are anything that seem like a good thing at the time but that prevent you from leaving. "Golden handcuffs are a system of financial incentives designed to keep an employee from leaving the company. These can include employee stock options that will not vest for several years but are more often contractual obligations to give back lucrative bonuses or other compensation if the employee leaves for another company." -- Wikipedia I would like to hear arguments about how a doubled salary, thanks to profit-sharing, does not count as a "system of financial incentives designed to keep an employee from leaving the company." It is merely the carrot and not the stick. (Does nobody Google any more?)