Life Events: Death

Example: You die when you only 40% of 10,000 stock options has vested. The remaining 6,000 of the options will be forfeited. The 4,000 vested options may be exercised by your estate or beneficiary under the terms of your stock plan documents. They will have special rules that require the options to be exercised within a specified period.

However, an informal survey of 275 companies by the Ayco Company in 2011 found that, for restricted stock and restricted stock units, more than 75% of the companies provide for the acceleration of vesting upon death.