Explore commonly used personal finance terms.
Accelerated vesting allows employees to gain full ownership of benefits, such as stock options or retirement contributions, faster than the original schedule. This is common in mergers, acquisitions, or when an employee achieves specific performance goals. Accelerated vesting can incentivize employees to stay with a company during transitions or motivate high performance. For employees, it offers quicker access to vested benefits, enhancing financial security and career flexibility.