A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z
Post-Vest Holding Period

A specified length of time after share acquisition during which the company requires employees and/or executives to refrain from selling or otherwise transferring the acquired shares. Some companies apply post-vest holding periods to ensure that grant recipients follow ownership guidelines. Other companies may impose them to facilitate clawbacks or lower the corporate earnings charge. A required post-vest holding period does not delay the taxation of the grant and therefore imposes a market risk: you must pay taxes on the value of shares you cannot sell, and subsequently the stock price may decrease.

For more on mandatory post-vest holding periods, see the FAQ about this topic elsewhere on myStockOptions.com.

Return to list Register Now

Try the new myStockOptions.com Glossary App! Now available for Android and iOS.

Get it on Google Play
The content is provided as an educational resource.
myStockOptions.com shall not be liable for any errors or delays in the content, or any actions taken in reliance thereon.
Copyright © 2000-2021 myStockPlan.com, Inc. U.S. Patent 7,353,200.
Contact editors@mystockoptions.com for licensing information