Startup Terms Glossary
What is Single Trigger Acceleration?
Single trigger acceleration refers to the portion of a contract that indicates that when a trigger event occurs, the vesting obligations for a stockholder is accelerated. This means that when a qualifying event occurs, vesting is sped up, which allows the shareholder to cash in on the partial or full amount of their stock. Single trigger acceleration is a popular stipulation that many companies include in employees’ severance plans or packages.
Single Trigger Acceleration Examples
Examples of events that activate single trigger acceleration:
- Example 1. Sale of a company
- Example 2. Stakeholders’ involuntary termination from company
Here’s another web page about single trigger acceleration.
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