Vesting acceleration

Also called: accelerated vesting

In one line

A clause that vests some or all of your unvested equity early when a trigger occurs, such as the company being acquired.

In plain English

Acceleration speeds up your vesting on certain events. 'Single-trigger' vests on the acquisition itself; 'double-trigger' vests only if you're also let go after it. It can turn years of future equity into equity you own now.

If you were explaining it to a 5-year-old

If the club is sold, a rule can say 'you get all your remaining chocolate squares straight away' instead of waiting months.

Why it matters when you sell

Acceleration can dramatically increase how much equity you hold at an exit — crucial when weighing a sale now versus what an acquisition would bring.

Put it to use

Options in an acquisition

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Sources

A general market-practice term. See how we define and source the glossary in our methodology. General information, not advice.

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Vesting acceleration

Related terms

Put it to use