ratchet
noun [ C ]
uk/ˈrætʃɪt/ us FINANCE, STOCK MARKET
an arrangement by which managers are given increasing numbers of shares in a company in relation to increases in its profits or success:
The sale has been rewarding for the chief executive, whose original 20% stake grew to 30% under a ratchet arrangement.
PRODUCTION
a part of a machine that allows controlled movement in one direction only
a system that controls activity:
Tightening the interest-rate ratchet to control inflation would risk tipping the economy into a nasty downturn.