What is a vesting schedule? | |
A vesting schedule dictates when you may exerci your stock options or when the forfeiture restrictions lap on restricted stock. A schedule is time-bad (graded or cliff) if you must work for a certain period before vesting. The schedule can also (or instead) be performance-bad or tied to company-specific or stock-market targets. Vesting in some situations can be accelerated by the board of directors or at certain events, such as a merger or your death (check your plan for specifics). Example: You are granted 5,000 stock options or shares of restricted stock. Your graded vesting schedule spans four years, and 25% of the grant vests each year. At the first anniversary of your grant date and on the same date over the subquent three years, 25% of the options or restricted stock vests. Once each portion vests, you can exerci the corresponding options or ll the shares of restricted stock. This chart illustrates the vesting schedule: For survey data on the different types of vesting schedules that companies u, e an FAQ on typical vesting schedules and an FAQ specifically on time-bad schedules. Termination almost always stops vesting except in certain situations (e.g. death, disability, or retirement, depending on the specifics of your plan and grant agreement). Example: Following the situation of the prior example, you leave your company three years after the date of grant. You forfeit the 1,250 shares that have not yet vested. For any unexercid vested stock options (potentially 3,750) you must follow the post-termination exerci rules. | |
What is a vesting schedule? The timetable that specifies when options Vest, or become exerciable. A typical vesting schedule is 25% per year on the anniversary of the grant date. That means that after one year up to 25% percent of the options granted may be exercid; after two years, up to 50%; after three years, up to 75%; after four years, all of the grant. As another example, Cliff vesting describes a vesting schedule in which all options become exerciable on a single date. Performance-bad Vesting and Rever Vesting are other examples of vesting schedules. 大三实习 |
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