What is a double trigger vesting?

What is a double trigger vesting?

Double trigger acceleration requires the occurrence of two events for vesting acceleration to occur. Typically, this is a change of control and either termination without cause or the employee terminates for good reason.

What is a double trigger stock options?

To begin with, double-trigger acceleration is the partial or full acceleration of vesting of options or stock based on the occurrence of two different events. In this case, each event is a “trigger”, if both events occur, it becomes a “double trigger”.

What is a double trigger basis?

This approach is commonly referred to as “double trigger” acceleration upon an acquisition. It is so named because two events must occur before the employee stockholder will be treated as the outright owner without any risk of forfeiture-one, the company must be acquired, and two, the employee must be terminated. 3.

What is a double trigger acceleration clause?

A double acceleration clause requires two events to trigger vesting acceleration. One event is the sale or merger of the company, and the other is usually termination of the employee without cause. So the employment agreements for these individuals don’t make the special vesting occur until the employee is terminated.

What is a vesting trigger?

Single-trigger, as discussed above, provides that at a sale or change of control, some or all of the restricted stock will immediately become vested. A double-trigger typically starts with the sale or change of control but does not cause acceleration until a second event occurs.

Why does the sharps have two triggers?

That’s a double set trigger. One trigger fires the rifle. The other trigger “sets” the trigger pull on the second trigger to a VERY light pull weight. This makes accurate fire slightly easier than if the firiing trigger had a (more safe) pull weight of, say five pounds.

Is single trigger better than double trigger?

Summary. Single-trigger accelerations cause the full or partial vesting of employee stock. Double-trigger accelerations are more popular in the startup world today. If an employee leaves for “good reason” (e.g. changing roles) they may also trigger an acceleration of the vesting of their stock options.

Why does a pistol have two 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 there is only one actual trigger on a Glock, you have to pull back those triggers if you want the gun to fire. Glocks double trigger is an important safety mechanism.

Why are there two triggers on a muzzleloader?

Some muzzleloaders have a set trigger that allows the shooter to advance the trigger and set it so that very little additional pressure is required to fire. Double-Set, Single-Phase: A two-trigger system. Pull the rear trigger to set the front trigger for firing.

What does double-trigger vesting mean for RSUs?

RSUs with only time-based service vesting are known as single-trigger RSUs. Double-trigger vesting solved a big problem for employees: how to come up with cash to pay taxes. In the Facebook case, the liquidity requirement was satisfied six months after the company went public, which coincided with the end of the six-month lock-up period.

What is “single-trigger” or “Double-Trigger?

You may have heard people refer to “single-trigger” or “double-trigger” acceleration . What are they talking about? 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.

Should founders and key executives accelerate vesting?

Some founders and key executives negotiate into their equity arrangements that they will be entitled to some form of acceleration of the vesting on their equity upon the occurrence of a triggering event. This is not the norm, even for founders and key executives, and very unusual for rank-and-file startup employees.

What is time-based service vesting and how does it affect employees?

For employees who have been with the company for some time before an IPO, they have likely met most or all of the time-based service vesting requirement. That means that when the second condition is met at IPO, direct listing, or acquisition, their shares will be taxable all at once (we’ll look at the unique case of direct listing shortly).