Vesting Acceleration

Vesting Acceleration is a contractual provision in stock option or equity grant agreements that expedites the vesting schedule of unvested equity in certain predefined scenarios. This typically occurs in the event of a company acquisition, merger, or change in control.

There are two main types:

• Single-trigger acceleration: Equity vests automatically upon a triggering event like a company sale.

• Double-trigger acceleration: Equity vests if two conditions are met — typically a company acquisition followed by the employee being terminated without cause within a specific time frame.

Vesting acceleration ensures that employees and executives are fairly compensated if strategic changes impact their ability to benefit from long-term equity grants.