Vesting Schedule — Schedule setting forth when, and to what extent, options become exercisable or restricted stock or stock units are no longer subject to forfeiture (for example, 20% per year over five years). Bloomberg Financial Dictionary … Financial and business terms
vesting schedule — noun The schedule setting forth when and to what extent options become exercisable (for example, 20% per year over five years); could apply to restricted or deferred stocks also … Wiktionary
Vesting — In law, vesting is to give an immediately secured right of present or future enjoyment. One has a vested right to an asset that cannot be taken away by any third party, even though one may not yet possess the asset. When the right, interest or… … Wikipedia
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… … Investment dictionary
Cliff Vesting — The process by which employees earn the right to receive full benefits from the employee s qualified retirement plan account at a specified date, rather than becoming vested gradually over a given period of time. Cliff vesting happens when… … Investment dictionary
Graduated Vesting — The accelerated benefits employees receive as they increase the duration of their service to an employer. A vesting schedule is mandated by federal law for the employers contribution portion of private retirement plans. It specifies the minimum… … Investment dictionary
Option Schedule — A list of options grants to an employee or employees of a company that contain the date and size (in shares) of each grant, as well as the expiration date, exercise price and vesting schedule. Option schedules for high level officers and… … Investment dictionary
Employee Retirement Income Security Act — The Employee Retirement Income Security Act of 1974 (ERISA) (USStatute|93|406|88|829|1974|09|02) is an American federal statute that establishes minimum standards for pension plans in private industry and provides for extensive rules on the… … Wikipedia
Fully Vested — A person s right to the full amount of some type of benefit, most commonly employee benefits such as stock options, profit sharing or retirement benefits. Fully vested benefits often accrue to employees each year, but they only become the… … Investment dictionary
Employee stock option — An employee stock option is a call option on the common stock of a company, issued as a form of non cash compensation. Restrictions on the option (such as vesting and limited transferability) attempt to align the holder s interest with those of… … Wikipedia
401(a) Plan — A money purchase retirement savings plan that is set up by an employer. The 401(a) plan allows for contributions by the employee, the employer, or both. Contribution amounts, whether dollar based or percentage based, eligibility, and vesting… … Investment dictionary
