NAVIGATION

What is Vesting Acceleration?

Definition

Vesting Acceleration

Vesting Acceleration is a clause that speeds up an employee's or founder's equity vesting schedule, typically triggered by an acquisition or termination.

Why It Matters for Startups

Governs the legal rights and ownership distribution of the entity; configuring Vesting Acceleration is critical for managing long-term cap table health and alignment during executive compensation package design and m&a planning.

Detailed Deep Dive

Vesting Acceleration protects key contributors during ownership changes. By speeding up equity vesting, these clauses align founder and investor exit incentives.

Frequently Asked Questions

Q:What is the difference between single-trigger and double-trigger acceleration?

Single-trigger accelerates vesting upon a single event (like an acquisition), while double-trigger requires two events (an acquisition followed by termination).

Q:Why do investors prefer double-trigger acceleration?

It incentivizes key personnel to remain with the company after an acquisition, preventing immediate talent loss.

Quick Facts

CategoryLegal
Key ApplicationExecutive compensation package design and M&A planning

Coverage Trend12 Weeks

12w agoToday

Related Startup Terms

Option Pool Vesting Acquisition

Cite This Term

Reference this definition in your articles, research, or documentation to credit this source:

[Vesting Acceleration | SPIDITS Glossary](https://spidits.com/startup-glossary/vesting-acceleration)

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