© 2019 VERHAGEN BENNETT LLP

Los Angeles, CA

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Accelerated Vesting

A form of vesting that takes place at a faster rate than the initial vesting schedule in a company's stock option plan. This allows the option holder to receive the monetary benefit from the option much sooner. If a company decides to undertake accelerated vesting, then it may expense the costs associated with the stock options sooner.

 

The most common types of accelerated vesting are “Single Trigger” and “Double Trigger” acceleration.