Definition of vesting in US English:



  • 1The conveying to an employee of unconditional entitlement to a share in a pension fund.

    • ‘Stock options granted to new employees usually vest over four years with a one-year cliff (no vesting at all until one year from date of hire).’
    • ‘The contract also provides for continued vesting of outstanding stock options and restricted stock, and continuation of health and life insurance benefits.’
    • ‘Jane's options can be exercised prior to the stock vesting, subject to a buy-back by the company at the exercise price if she quits early.’
    • ‘No employee in the company enjoyed immediate vesting.’
    • ‘A cash-poor start-up may rely heavily on stock options to compensate its employees, and the delayed vesting of the stock provides incentive for employees to stick with the new company.’
    • ‘It's known as immediate vesting and can give returns of more than 10%.’
    • ‘In such cases, he recommends a balanced severance that includes an acceleration of vesting for options, restricted stock and salary, and a bonus continuation - in a lump sum.’
    • ‘With respect to wealth creation and retention, I'm in favor of programs that have some type of vesting.’
    • ‘The statutory vesting period is five years, but your employer may provide immediate vesting if he or she wishes.’
    • ‘The expense was booked as a one-time charge, because ‘there is no vesting for these shares,’ he says.’
    • ‘Microsoft is choosing to account conservatively for the ongoing vesting of options it has granted in the past.’
    • ‘The company says the changes in the vesting of his options were due to of tax considerations.’
    • ‘That's because automatic vesting leaves no incentive for employees of a target company to stay on.’
    • ‘The argument for the accelerated vesting is that, without it, CEOs would be less inclined to pursue a merger.’
  • 2Medium- to heavy-weight cloth with a decorated or raised pattern, used for vests and other garments.