What it is: Double-trigger acceleration is a provision related to equity vesting in which an employee's unvested stock or options become fully vested upon two triggering events. For example, if the company is sold and the employee is involuntarily terminated, both events need to happen for the acceleration of equity vesting.
Why it is essential: Double-trigger acceleration is important to provide additional employee protection and incentives in the event of specific triggering events, such as a change of control or termination. It aligns the interests of employees with the company's success and helps attract and retain top talent.
Formulas: There are no specific formulas associated with double-trigger acceleration.
How to use it in the context of startups: Startups can use double-trigger acceleration as part of their equity compensation plans to incentivize and retain key employees. By implementing this provision, startups can offer employees an extra layer of protection and potential financial gain in specific triggering events, contributing to employee satisfaction and engagement.
