Accelerated Vesting
Accelerated vesting refers to the process by which employees gain ownership of stock options or restricted stock units (RSUs) more quickly than originally planned. In the context of double trigger acceleration, this accelerated vesting occurs under specific conditions.
Reasons To Implement Accelerated Vesting
Companies may implement double trigger acceleration to:
- Protect Employees: Ensure that employees are rewarded for their contributions, especially in the event of a merger or acquisition.
- Retain Talent: Provide a sense of security and motivation for employees to stay with the company through transitional periods.
- Align Interests: Align the interests of employees with those of shareholders by ensuring employees benefit from the company’s success.
Conclusion
Double trigger acceleration is a strategic tool used by companies to protect and incentivize employees during significant corporate events. By implementing accelerated vesting, companies can ensure that their employees are adequately rewarded and motivated, contributing to the company’s stability and success during transitions.
