Tax Center Global Tax Guide / Glossary / Discussion / About Us
Register Log In
Core Concepts   
Valuation & Expensing   
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.

Basics: Vesting

Can I negotiate faster vesting later while I am working for the company?
Probably not. If a company makes a grant with a specific vesting schedule and the schedule is later shortened from its original terms, the accountants will usually make the company take a charge to earnings for the incremental costs either at the time of the modification or when the event occurs to accelerate the vesting. At the time of your grant, whether of options or restricted stock, you can suggest accelerated vesting based on performance goals, with the grants still vesting after a set term. This would avoid accounting complexities for your company.

In some situations, you may be able to negotiate accelerated vesting as part of a severance agreement.

Alert: Check your stock plan and grant agreement, as it may already have provisions that accelerate vesting for specific life events (e.g. death, disability, retirement) and/or a change in control at your company.
Print this FAQ: Printer icon
Share this FAQ:
Share this article on LinkedIn Share this article on Facebook Share this article on twitter
Prior FAQ in list Return to list