stay bonus


A stay bonus is an incentive offered to employees, often after their company is acquired by another entity like Google or Facebook. This bonus is structured to encourage employees to remain with the company post-acquisition. When a company is bought, the acquisition price generally consists of two parts: an upfront payment and a stay bonus. The stay bonus is paid over time provided the employee continues to work for the company for a specified period. For instance, employees might receive certain amounts if they stay for one, two, or three years. The stay bonus typically represents a significant portion but not the majority of the total payout—often, as cited by Tim Ferriss, around 40% of the total acquisition price. This arrangement is used by acquiring companies to prevent a swift departure of key personnel following a buyout 1 .

Leaving Google, Acquisition Payouts

Luis von Ahn shares insights on leaving Google before finishing vesting and explains the components of acquisition payouts, including the stay bonus that encourages employees to stick around after the acquisition.

Tim Ferriss Show

Luis Von Ahn Interview (Full Episode) | The Tim Ferriss Show (Podcast)