Double-Trigger Acceleration
Définition
Double-trigger acceleration vests unvested equity only when two events both occur, typically a change of control, such as an acquisition, and the employee being terminated without cause or leaving for good reason within a defined window afterward.
Comment cela se présente dans le financement
Double-trigger acceleration is the market standard for employee and executive equity because it protects people from losing their unvested equity in an acquisition while still giving an acquirer a real chance to retain them.
Questions fréquemment posées
What counts as the second trigger in double-trigger acceleration?
Usually being fired without cause or resigning for good reason, such as a demotion or forced relocation, within a set period, often 12 months, after the change of control.
Why do acquirers prefer double-trigger over single-trigger acceleration?
It keeps the team's equity incentive intact through the transition, since employees only get full acceleration if the acquirer actually lets them go or materially changes their role.
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