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If a vesting schedule is used, only one year of service may be required.
The vesting schedule can be whatever the employer would like it to be.
This is often true for plans sponsored by a single company, but some have seven-year vesting schedules.
Courts have looked to vesting schedules to determine whether certain options should be considered marital property.
The vesting schedule for these options will be described in the grant agreement, which shall govern.
Could you make sure the wording for the vesting schedule (highlighted in yellow) is acceptable.
All other employer contributions may be subject to the vesting schedule selected by the employer.
(3) Many contracts include incentives such as performance pay, earn-outs and vesting schedules.
Cook's stock award was previously based on a pre-determined time-based vesting schedule of 10 years.
Some plans provide two vesting schedules.
Similarly, the culture of vesting schedules amongst Internet executives has influenced their pre-nuptial agreements.
Whatever their pay, Foley said most outside investors would hope employees had a vesting schedule to incentivize employees to stay with the company.
Examples of permitted variables include contribution rates, benefit rates, vesting schedules, and retirement ages.
Too many “serial entrepreneurs” divide their careers into 48-month increments – in line with the vesting schedule for stock in a start-up.
The vesting schedule for the newly issued options will begin on the date of the grant of such options.
They may require that certain matters be corrected before agreeing to the transaction, e.g. new employment contracts or stock vesting schedules for key executives.
Less commonly, the vesting schedule may call for variable grants or subject to conditions such as reaching milestones or employee performance.
The vesting schedule is most often a pro-rata monthly vesting over the period with a six or twelve month cliff.
Examples of permissible variables are the vesting schedule, administration fee schedule, retirement age, and designated investment funds.
Contribution amounts, whether dollar-based or percentage-based, eligibility, and vesting schedule are all determined by the sponsoring employer.
But making basic assumptions about the option vesting schedule and bonus payouts could mean that some top executives might get multimillion-dollar exit packages.
At the Williams Companies, the pipeline owner, options granted in 2002 were subject to a vesting schedule of one-third of the grant each year.
In addition, 50,000 restricted ordinary shares of the Company subject to a vesting schedule were granted to an executive of the Company.
Dramatically lowering the strike price -- in exchange for extending the vesting schedule -- was supposed to help with employee retention.
As the Agency is not usually concerned about vesting schedules, we should not request amendments to definitions of service that affect vesting only.