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. Accelerated Vesting

    A form of vesting that takes place at a faster rate than the ...
  2. Graduated Vesting

    The accelerated benefits employees receive as they increase the ...
  3. Vested Benefit

    A financial incentive granted to employees who have met the required ...
  4. 83(b) Election

    The 83(b) election is a provision under the Internal Revenue ...
  5. Stock Compensation

    A way corporations use stock options to reward employees. Stock ...
  6. Restricted Stock Unit - RSU

    A restricted stock unit is a compensation issued by an employer ...
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