An agreement that compensates a CEO to remain with the company after its acquisition is known as what?

The term that accurately describes an agreement compensating a CEO to remain with a company after its acquisition is known as a golden handcuff. These agreements are structured to incentivize key employees, especially top executives like the CEO, to stay with the organization during a transition period, providing stability and continuity. By offering stock options, bonuses, or other forms of compensation tied to their continued employment, the company aims to prevent the loss of leadership during critical moments.

In contrast, a golden parachute typically refers to a financial arrangement guaranteeing substantial severance pay or benefits to executives upon leaving the company, particularly during mergers or acquisitions. A golden handshake is similar, but it usually pertains to compensation provided to an executive at the time of their departure rather than incentivizing them to stay. The term golden life jacket isn't a commonly used phrase in corporate parlance and doesn't have recognized significance in this context.