Immediate Vesting

Immediate Vesting

Describing a stock option or qualified retirement plan to which a person is entitled to the benefits of ownership immediately upon receiving the option or plan, even if he/she no longer works at the company providing it. Vesting usually occurs after an employee has worked at the company for a certain number of years, but in immediate vesting, as the name implies, the person has full benefits immediately. Once a benefit is vested, the benefits of the stock option or plan cannot be revoked.
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Cash Payments Cash payment equal to some multiple of either base 11 of 12 companies salary or base salary plus incentive Cash payment in recognition of the CEO's contribution 6 of 12 companies Adjustments to the Long-Term Plans Immediate vesting of 6 of 12 companies with stock options stock option plans Increase period to exercise vested options 4 of 12 companies with (beyond normal timing for terminating stock option plans employees) Immediate vesting of 2 of 5 companies with restricted stock plans restricted stock plans Pro rata payout under 3 of 4 companies with long-term cash plans long-term cash plans Medical/Pension Provisions Additional years of medical coverage/placement 9 of 12 companies on retiree medical coverage Enhanced pension program 2 of 12 companies
Although rare in defined benefit plans, immediate vesting accounted for slightly more than one-quarter of the participants in savings and thrift and deferred profitsharing plans.
Immediate vesting upon plan membership is mandatory.
Upon the successful completion of this offering, Blackstone's ownership in Pinnacle Foods will decline to below a threshold that triggers the immediate vesting of approximately 1.
Assuming immediate vesting, a cash-basis taxpayer and an arm's-length transaction, the contribution would be ordinary income to the employee in the year paid and a completed girl to the designated beneficiary in the same year.
These provisions served to protect deferred compensation through immediate vesting of participant accounts or automatic lump-sum payment of benefits in the event of a takeover.
They are less likely to have immediate vesting and more likely to have "cliff vesting" -- an "all or none" vesting schedule that may take as long as five years.
Survey results: 26% had immediate vesting, 24%, however, had to wait five years before becoming fully vested.
9 percent of plans provide immediate vesting for matching contributions, while 23.
3 million of compensation expense related to the immediate vesting of certain equity based compensation awards granted in the third quarter of 2014 and approximately $0.
Graham explains that an immediate vesting personal pension allows almost everyone over 50 to invest pounds 2,808 now and have the Inland Revenue add a further pounds 792, making a total gross investment of pounds 3,600.
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