Definition
The expedited release of equity compensation to employees, often triggered by changes in control or termination events. The 'golden parachute for non-executives.'
Example Usage
When the company was acquired, employees with accelerated vesting provisions suddenly watched their equity schedules compressed from four years to immediate.
Origin
Emerged in equity compensation strategy and M&A practices.
Fun Fact
The negotiations around accelerated vesting provisions can be more contentious than the actual acquisition terms—people calculate their life changes in basis points.
Source: Equity compensation and M&A employment law
Related Terms
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See “Accelerated Vesting” in Corporate Speak, Gen-Z Slang, Pirate Speak, and more.
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