Search
Go to the myStockOptions.com homepageTrack your stock options, restricted stock, and SARsCalculators and modeling toolsBookmark your favorite contentView and manage your client list
Tax Center Global Tax Newsletter Glossary Discussion About MSO Home Sign In Register

Basics: Vesting



Print this FAQ
Does the reason for my termination affect vesting?
Yes. Stock plans often have various provisions on any acceleration of vesting, on whether unvested options or restricted stock continue vesting, and on post-termination exercise periods for vested options. These can depend on whether the termination is "for cause" or involuntary, or whether it results from death, disability, retirement, or a change in control. Most commonly, when you terminate employment under normal conditions, vesting stops. See your stock plan and grant agreement for specifics, such as those on disability, death, and retirement.

Your company is not required to keep you informed of these provisions. This is your responsibility and can affect how and when you leave your company.

See another FAQ for survey data on the most common treatments of unvested stock options at termination.

Prior FAQ in list Return to list Next FAQ in list
   Basics   
Core Concepts   
Benefits   
Grants   
Vesting   
Exercise   
Sales   
Valuation & Expensing   
Alternatives   
Underwater Options   

Annotated diagram of Schedule DTax errors can be costly! Don't draw unwanted attention from the IRS. Our Tax Center explains and illustrates the tax rules for sales of company stock, W-2s, withholding, estimated taxes, AMT, and more.