This is often done where company managers own a share in the company A ratchet is a mechanism by which investors provide management with an incentive.When a slang word catches on, students of language often have a difficult time figuring out its meanings and origin.

From Longman Business Dictionary ratchet ratch‧et 1 / ˈrætʃɪt / noun FINANCE an arrangement in which the value of someone’s share in a company depends on how well the company performs. And all the time Banks keeps ratcheting up the suspense.Netscape Communications will announce new Internet products for businesses today, ratcheting up the pressure on Microsoft.Raising the minimum wage would ratchet up real incomes where disparities are at their worst and need is most clustered.ratchet ratchet 2 verb → ratchet up → See Verb table Examples from the Corpus ratchet There is a sort of upward ratchet effect where each achievement level becomes the baseline for the next change.By the use of the ratchet, the investors agree to share success with the management.Drive direction can be changed but the ratchet can't be locked out: operation was positive but fiddly.

The quick turnstiles metered the tokens with a noise of ratchets.

Another sinister plot another twist of the federal ratchet.

A nylon webbing strap is wrapped around the frame and is then tightened using a ratchet action of the clamp head.Just as a ratchet turns easily one way but can not turn back, so genetic defects inevitably accumulate.From Longman Dictionary of Contemporary English Related topics: Mechanical ratchet ratch‧et 1 / ˈrætʃɪt / noun TEM a machine part consisting of a wheel or bar with teeth on it, which allows movement in only one direction Examples from the Corpus ratchet

Backpack ratchet urban dictionary