Definition: To give someone control over their stock or stock options.
When employees are given stock options or restricted stock, they often do not gain control over the stock or options for a period of time. This period is known as the vesting period and is usually 3 to 5 years. During the vesting period the employee cannot sell or transfer the stock or options.
Typically, a quarter of the options in a stock option grant, for example, will vest each year for a four-year period.
Also Known As: to vest, vested
Examples: 100 shares of restricted stock will vest on your employment date in each of the next four years.
