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.

BREAKING DOWN 'Vest Fleece'

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.

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RELATED FAQS
  1. What is a vest fleece?

    A vest fleece is a term first coined by Jack Ciesielski, founder of The Analyst's Accounting Observer, and it relates to ... Read Answer >>
  2. What is cliff vesting?

    An employee is considered "vested" in an employer benefit plan, once they have earned the right to receive benefits from ... Read Answer >>
  3. Can my company ever be entitled to take my 401(k)?

    Find out why your employer may be able to take part of your 401(k) if you leave your employment too soon, including how different ... Read Answer >>
  4. How do I "vest" something?

    Vesting is a term usually related to pension plans that some employer's provide to their employees.An employer may make contributions ... Read Answer >>
  5. What’s the best option for selling grants, market or limit?

  6. What are the penalties of cashing out a 401(k) before retirement?

    Learn about the penalties for early 401(k) distributions, including how taxes and vesting schedules can reduce your net withdrawal. Read Answer >>
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