Incentive schemes such as stock awards, share purchase plans, share option plans, restricted share unit plans and cash-settled share schemes often include vesting conditions. These vesting or exercise conditions may include:
a vesting schedule based on continued employment;
vesting and/or receipt of shares or cash being linked to the achievement of certain performance goals;
- exercise conditions on options where certain performance or time-based goals are satisfied.
However, vesting conditions are often drafting in a complex or unclear manner – we can help you work through the complexity and provide clarity on whether your incentives have vested.