In the context of stock compensation, a trigger is an event that causes change or acceleration in the stock grant. For example, some stock plans accelerate vesting of equity awards upon shareholder approval, the closing of a merger, or new management (i.e., a change in control
). When just this one event accelerates vesting, the plan is considered to have a single trigger. Other plans may require a double trigger
, e.g. a merger plus firing, demotion, or relocation. For more on triggers, see related FAQs
elsewhere on this website.