Vesting Acceleration

Vesting acceleration refers to the process of speeding up the vesting schedule of a stock option or other form of equity compensation. Vesting schedules are typically put in place to align the interests of employees with those of the company by requiring employees to remain with the company for a certain period of time before they are able to exercise their stock options and receive the full benefits of their equity compensation. Vesting acceleration can occur in a number of different situations, such as in the event of a merger or acquisition, the death or disability of the employee, or the voluntary or involuntary termination of the employee's employment. Vesting acceleration can provide a valuable benefit to employees by allowing them to receive the full value of their equity compensation sooner than they would under the normal vesting schedule.