vesting
Rights becoming yours
Vesting is the process by which rights or benefits become fully owned over time.
Most commonly describes how employees gradually earn ownership of retirement contributions or stock options: After five years, your 401(k) match is fully vested.
A vesting schedule specifies when and how much becomes yours.
Until vested, benefits may be forfeited if you leave.
The term also appears in legal contexts where rights become unconditional.
Contracts to purchase shares
- RSUsPromised shares upon vesting
- restricted stockShares with sale limitations
- sharesUnits of company ownership
- grantsAwarded funds for purposes
strike price · exercise · unvested · ISO · dilution · ESOP · SAR · waterfall
Employer-sponsored retirement savings
- pensionRetiree's ongoing benefit
- IRATax-advantaged retirement fund
- employer matchCompany duplicates worker savings
- defined benefitPredetermined retirement payment arrangement
superannuation · annuity · profit-sharing · ERISA · rollover · portability · forfeiture · service years
Protected employment status
- retentionContinued holding or possession
- golden handcuffsFinancial incentives preventing departure
- severanceTermination pay or disconnection
- terminationAct of ending something
resignation · loyalty · incentive · compensation · HR · offer letter · employment agreement · probationary
Agent bound by loyalty
- beneficiaryDesignated asset receiver
- trustConfidence in another
- irrevocableCannot be undone
- revocableAble to be canceled
grantor · settlor · corpus · estate planning · ERISA · compliance · amendment · termination
Vertical rock wall
- gradedAssigned a score
- immediateHappening without delay
- acceleratedIncreased in velocity
- milestoneNotable event marking progress
time-based · performance-based · pro-rata · incremental · phased · trigger · ratable · quarterly
stock options
Contracts to purchase shares
- RSUsPromised shares upon vesting
- restricted stockShares with sale limitations
- sharesUnits of company ownership
grants · strike price · exercise · unvested · ISO · dilution · ESOP · SAR · waterfall
401k
Employer-sponsored retirement savings
- pensionRetiree's ongoing benefit
- IRATax-advantaged retirement fund
- employer matchCompany duplicates worker savings
defined benefit · superannuation · annuity · profit-sharing · ERISA · rollover · portability · forfeiture · service years · early withdrawal
tenure
Protected employment status
- retentionContinued holding or possession
- golden handcuffsFinancial incentives preventing departure
- severanceTermination pay or disconnection
termination · resignation · loyalty · incentive · compensation · HR · offer letter · employment agreement · probationary · hire date
fiduciary
Agent bound by loyalty
- beneficiaryDesignated asset receiver
- trustConfidence in another
- irrevocableCannot be undone
revocable · grantor · settlor · corpus · estate planning · ERISA · compliance · amendment · termination · nonqualified
cliff
Vertical rock wall
- gradedAssigned a score
- immediateHappening without delay
- acceleratedIncreased in velocity
milestone · time-based · performance-based · pro-rata · incremental · phased · trigger · ratable · quarterly · annual
- equityshareholder equity, common stock, preferred stock, equity stakes, retained earnings
- retirementretirement, retire, retirement age, retirees, retirement income
- job perkssalary, perks, pension plans, 401k, benefits
- ownershipowner, own, ownership, possess, proprietorship
- work benefits401k, dental insurance, health insurance, life insurance, paid time off
- assigningassigning, allocating, appointing, attributing, crediting
vestingforfeiture
Loss due to breach
divesting · divestiture · revocation · stripping · forfeiting
vestingunvested
Not yet owned outright
forfeiture · lapsing · expiration · cliff · pending
vestingdisapproving
Expressing unfavorable opinion
withholding · denying · revoking · rescinding · vetoing
- vesting scheduleTimeline for earning ownership
- vesting periodTime until ownership transfers