Definition
A financial incentive paid to critical employees to prevent them from jumping ship during uncertain times like mergers, acquisitions, or major restructuring. Essentially bribing people to not abandon the sinking ship—or at least to stay aboard until it reaches port.
Example Usage
The company offered stay bonuses to all the senior engineers during the acquisition to ensure they don't flee to competitors before the integration is complete.
Origin
Became widespread during the merger-heavy 1980s and 1990s when retention became critical during organizational transitions
Fun Fact
Stay bonuses typically require employees to remain for 6-18 months and can range from 10% to 50% of annual salary, but they're usually paid only if the employee survives until the end date.
Related Terms
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See “stay bonus” in Corporate Speak, Gen-Z Slang, Pirate Speak, and more.
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