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vesting

noun

vest·​ing ˈve-stiŋ How to pronounce vesting (audio)
: the conveying to an employee of inalienable rights to money contributed by an employer to a pension fund or retirement plan especially in the event of termination of employment prior to the normal retirement age
also : the right so conveyed

Example Sentences

Recent Examples on the Web Laid off Twilio employees will also receive the full value of their stock scheduled to vest in the next vesting, Lawson wrote in the memo. Kylie Robison, Fortune, 14 Sep. 2022 The company laid off 73 full-time employees, who will receive 8 weeks of pay, 3 months of accelerated option vesting and 3 months of healthcare coverage. Emma Talley, San Francisco Chronicle, 6 Aug. 2022 The vesting of employment rights occurs on reenrollment. Johnny C. Taylor Jr., USA TODAY, 22 Mar. 2022 Income-Shifting And Multi-Year Planning Multi-year planning is especially valuable with equity compensation, given the spikes of income that can occur with option exercises, the vesting of restricted stock/RSUs, or company stock sales. Bruce Brumberg, Forbes, 9 Dec. 2021 As for restricted stock units, job termination stops the vesting of RSUs. Bruce Brumberg, Forbes, 31 Aug. 2021 The lion’s share of Sayer’s compensation, about 88 percent, came from the vesting of restricted stock. San Diego Union-Tribune, 5 Sep. 2021 And no private-sector plan would be legally allowed to have such a strict vesting requirement as 10 years; ERISA requires the private-sector DB plans vest after 5 years, and 401(k)s after 3 years. Elizabeth Bauer, Forbes, 7 June 2021 The Big 12’s Bob Bowlsby was credited with $4.4 million in 2019, up by about $350,000 over 2018 due to the vesting of deferred compensation, the conference said. Steve Berkowitz, USA TODAY, 20 May 2021 See More

Word History

First Known Use

1944, in the meaning defined above

Time Traveler
The first known use of vesting was in 1944

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