Accelerated Vesting
Accelerated Vesting is a provision in an employee`s stock option or equity plan that allows the employee to gain access to their equity or stock options more quickly than the original schedule, often triggered by specific events such as a sale of the company.
Benefits
Accelerated vesting allows employees to gain full ownership of their company shares faster than usual. It gives them more control and incentive in the business.
Frequently Asked Questions
How common is accelerated vesting?
Accelerated vesting is somewhat common in business, especially in startups, to motivate employees and align their interests with the company`s success.
What is an example of accelerated vesting?
Suppose you work at a startup and your company gets bought by a bigger company. With accelerated vesting, instead of waiting for years to fully own your shares, you get them all at once when the acquisition happens.
What is accelerated vesting for founders?
Accelerated vesting for founders means they get quicker access to owning all their shares if certain conditions, like a sale or acquisition, happen sooner than expected.
Key Takeaway
Accelerated vesting helps employees get their company stocks quicker, especially during big events like a company sale, boosting motivation and aligning their interests with the company`s success.