Accelerated Vesting

Advanced 👥 Human Resources

Definition

The expedited release of equity compensation to employees, often triggered by changes in control or termination events. The 'golden parachute for non-executives.'

Example Usage

When the company was acquired, employees with accelerated vesting provisions suddenly watched their equity schedules compressed from four years to immediate.

Origin

Emerged in equity compensation strategy and M&A practices.

Fun Fact

The negotiations around accelerated vesting provisions can be more contentious than the actual acquisition terms—people calculate their life changes in basis points.

Source: Equity compensation and M&A employment law

Related Terms

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