It's known as immediate vesting and can give returns of more than 10%.
The argument for the accelerated vesting is that, without it, CEOs would be less inclined to pursue a merger.
No employee in the company enjoyed immediate vesting .
Microsoft is choosing to account conservatively for the ongoing vesting of options it has granted in the past.
Jane's options can be exercised prior to the stock vesting , subject to a buy-back by the company at the exercise price if she quits early.
With respect to wealth creation and retention, I'm in favor of programs that have some type of vesting .
Stock options granted to new employees usually vest over four years with a one-year cliff (no vesting at all until one year from date of hire).
The expense was booked as a one-time charge, because ‘there is no vesting for these shares,’ he says.
The company says the changes in the vesting of his options were due to of tax considerations.
The statutory vesting period is five years, but your employer may provide immediate vesting if he or she wishes.