Accelerated Vesting

What is Accelerated Vesting?

Accelerated vesting refers to the process of speeding up the vesting schedule for employee stock options or other equity compensation. This allows employees to gain full ownership of their shares more quickly than originally planned. Accelerated vesting can be triggered by specific events, such as a company acquisition or reaching certain performance milestones.

Common Triggers for Accelerated Vesting

• Change of Control: Accelerated vesting may occur if the company is acquired or undergoes a merger.
• Performance Milestones: Achieving key business objectives can trigger faster vesting.
• Termination Without Cause: Employees may receive accelerated vesting if they are laid off without cause.

Related Terms and Concepts

Stock options, vesting schedule, equity compensation, change of control