Ownership transfer of common equity awarded to Issuer employees is regularly assigned a vesting schedule wherein the transfer of ownership occurs over 3 to 4 years as an incentive for employee retention. Upon a qualifying liquidity event, such as the sale of the Issuer or its initial public offering, all the equity that has not yet been transferred to the employee is then accelerated. Relates to equity.
« Back to Glossary IndexCommon Stock Vesting
by [email protected] | Oct 4, 2022