Vest Fleece


DEFINITION of 'Vest Fleece'

A slang term used to describe a situation in which a company's executives accelerate the vesting of their employee stock options. Usually, accelerated vesting is preceded by a period of excessively high employee stock option grants. The result of vest fleecing is that shareholders' ownership is reduced, and option holders are able to turn their options into stock in a shorter time period than if they had not accelerated vesting.


A vest fleece results in option holders being given an increased share of ownership in their employers' companies.

This term was coined by Jack Ciesielski, founder of The Analyst's Accounting Observer.

  1. Employee Stock Option - ESO

    A stock option granted to specified employees of a company. ESOs ...
  2. Vesting

    The process by which employees accrue non-forfeitable rights ...
  3. Non-Qualified Stock Option - NSO

    A type of employee stock option where you pay ordinary income ...
  4. Incentive Stock Option - ISO

    A type of employee stock option with a tax benefit, when you ...
  5. Cliff Vesting

    The process by which employees earn the right to receive full ...
  6. Camouflage Compensation

    Compensation that is granted to upper echelon employees, directors, ...
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