Definition
Money paid to employees who agree not to leave after a merger or acquisition, essentially paying people to stay longer at a party they're already considering leaving.
Example Usage
They offered a $50K loyalty bonus if I stayed for two years post-acquisition, which is code for 'please don't flee the sinking ship'.
Origin
M&A terminology popularized in the 1990s
Fun Fact
Employees receiving loyalty bonuses are statistically more likely to leave once the bonus vests than those not offered bonuses.
Source: Compensation and M&A terminology
Related Terms
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See “Loyalty Bonus” in Corporate Speak, Gen-Z Slang, Pirate Speak, and more.
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