What is double trigger accelerated vesting?
If someone has double-trigger vesting acceleration (commonly referred to as double-trigger acceleration) on their stock or stock options, that typically means the vesting will accelerate if (1) the company is acquired and (2) that person is terminated in connection with or following the acquisition1.
What is double trigger change in control?
Double Trigger means a Change in Control (“first trigger”) and a Qualifying Termination of the executive’s employment by the company without Cause or by the executive with Good Reason (“second trigger”).
How does accelerated vesting work?
Accelerated vesting allows an employee to speed up the schedule for gaining access to restricted company stock or stock options issued as an incentive. The rate typically is faster than the initial or standard vesting schedule. Therefore, the employee receives the monetary benefit from the stock or options much sooner.
What is an equity trigger?
Equity Trigger means the satisfaction, on or before the day that is sixty (60) days following the Closing Date, of each of the Schedule Requirement and the Lease Fulfillment.
What is single trigger vs double-trigger acceleration?
Single-trigger acceleration refers to the partial or full acceleration of vesting of someone’s options or stock based on the occurrence of a single event, i.e. that event is the “trigger” for acceleration. Double-trigger acceleration refers to acceleration based on the occurrence of two distinct events.
How double triggers work RSU?
What Are Double-Trigger RSUs? Double-trigger restricted stock units are those that aren’t taxable until two specific events occur. This differs from most RSUs provided by public companies, where shares are taxable immediately upon vesting.
What is single trigger vs double trigger acceleration?
Will vesting accelerate if there is a change in control?
Notwithstanding anything herein to the contrary, upon the occurrence of a Change of Control, the vesting of all of the Option Shares shall immediately be accelerated and all such shares shall be deemed to be fully vested and exercisable.
Who gets double trigger acceleration?
Double-trigger acceleration, as the name implies, requires two events to trigger acceleration – most typically the sale of the company and the involuntary termination of the employee, usually within 9-18 months after closing, and in some cases including a short pre-closing window (3 months or shorter) to counter any …
What is a double trigger RSU?
What happens to RSU if you leave before IPO?
Generally, leaving the company before the vesting date of restricted stock or RSUs causes the forfeiture of shares that have not vested. Exceptions can occur, depending on the terms of your employment agreement.
Why do Glocks have 2 triggers?
The Two Triggers Serve as a Safety Purpose
The biggest reason why Glock pistols have two triggers is that this serves as a safety mechanism. Even though the safety mechanisms of Glocks can vary slightly from handgun to handgun, most Glocks do not use the same safety features as traditional handguns.
Can you sell double-trigger RSU?
The bad news is that you may not be able to sell these shares right away. In fact, you may never be able to sell your shares if the company doesn’t have a liquidity event. But receiving vested RSUs, even when you can’t sell them, is still a taxable event.
What happens vested RSUs at a private company with a double-trigger vesting if you leave before liquidation event?
Double-trigger vesting of restricted stock units
To own the shares (or receive cash), you must satisfy two vesting requirements: usually time and liquidity. So if you leave the company before a liquidity event, it’s highly likely that you’ll forfeit your time-based vested RSUs.
Can RSU vesting be accelerated?
Notwithstanding anything herein to the contrary, upon a termination of your employment by the Company other than for Cause (as defined below) within six (6) months following a Change in Control (as defined below), any then unvested RSUs shall become fully vested as of such termination date.
What percentage of the unvested shares will vest on a change in control?
50%
Upon the close of a transaction that constitutes a Change of Control (as that term is defined below), Company shall immediately accelerate vesting of 50% of any portion of the Option and 50% of the portion of any other outstanding equity awards that remain unvested.
Is double-trigger acceleration common?
Double-trigger acceleration has become very popular with early stage companies and aims to align the interests of the employees, the investors and potential acquirers by (i) providing a safety net for key employees, some of whom may be removed in the consolidation during post-closing integration – CFOs and GCs are …
Can you sell double trigger RSU?
What happens vested RSUs at a private company with a double trigger vesting if you leave before liquidation event?
What happens to double-trigger RSUs when you leave a company?
What is Double-Trigger RSU?
Do Glocks ever jam?
In short: No. Barring user error or faulty ammunition, the design is proven and works even if you do silly things like submerge it in Jello – and that’s coming from somebody who doesn’t own (and isn’t planning on getting) a Glock.
What’s better single action or double action?
A single action revolver has a light and smooth trigger pull, as it only needs to drop the hammer. This allows for more accurate shooting. A double action revolver has a heavier, longer trigger pull, which can be detrimental to accuracy.
How are double-trigger RSU taxed?
Double-trigger RSUs aren’t taxable until two specific events occur. Double-trigger RSUs are usually taxed after they vest (usually on a time-based vesting schedule) and the company experiences a liquidity-based event (such as an acquisition or IPO).
Should you sell RSU as soon as they vest?
Key Points. A common rule of thumb is to sell restricted stock units when they vest because there is no tax benefit to holding the stock any longer. In a silo, selling RSUs as they vest often makes sense, but the decision can be complicated if you have other forms of equity, namely employee stock options.