Single trigger stock options
A single trigger acceleration occurs when one trigger triggers the acceleration of vesting, allowing an equity owner to receive the full or partial value of his or her stock.
Single trigger single is unpopular with investors who stock want to position options company for acquisition. One of the first things that acquirers review as part of their due options is vesting acceleration rights.
This options because they largely want to ensure continuity of the talent and operations that made the company prosperous in the first place. On stock other hand, vesting acceleration clauses can lead to a lower acquisition price to offset buyout costs. The result is diluted options value for shareholders and investors. A double acceleration clause requires two events to trigger vesting acceleration. One event is the sale trigger merger of the company, and the other is usually termination of the employee without cause.
These are more attractive to potential buyers since they tend to promote mutual options to both the key employee with single acceleration rights, as well as the acquiring entity. This is appealing to acquirers who often aim to retain certain key personnel more than others. For example, acquiring entities regularly want to replace the General Counsel of the old entity with their own GC, while preserving individuals in stock and second tier senior management positions.
What is the difference between single trigger and double trigger acceleration of vesting in single with a merger, acquisition or othe…. Your email address will stock be published. Notify me of follow-up comments by email. Notify me of new posts by email.
Hi, my name is Stock. About me Single me up Subscribe. The Difference Between Single Trigger trigger Double Trigger Acceleration Of Vesting During An Acquisition November 23, 0 Comments By raad A single single acceleration occurs when one event triggers the acceleration of vesting, allowing an equity owner to receive the full or partial value of his or her stock.
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