Double Trigger Acceleration

In a double trigger acceleration, it would take two distinct scenarios or "triggers" for the immediate vesting of startup employee's equity in the company, which has been made part of their compensation package. In a way, it is designed to protect the interests of the employees and safeguard them from being terminated by an acquirer in the event of a company buyout. It does so by integrating an economic decision of unvested equity. For instance, if the employee is terminated, they can benefit from vesting the equity at a higher cost than what the acquirer could afford for hiring a new employee.

  • Common scenarios that could trigger acceleration:
    • Change of company ownership
    • Employee's involuntary termination

In the case of the latter, it is considered an ideal ground for acceleration, especially when the involuntary resignation coincides within 9 to 28 months of the company's sale and closing.

Upstock's Contribution to Double Trigger Acceleration:

Upstock plays a pivotal role in enhancing double trigger acceleration processes by offering an automated platform that simplifies and streamlines various tasks related to setting up and managing vesting, triggers, acceleration grants, and more.

  • Companies leverage Upstock's tools to:
    • Rapidly establish employee equity plans
    • Recognize and reward individuals for their valuable contributions
    • Safeguard the company's interests in scenarios like change in ownership or involuntary termination

The automated platform provided by Upstock facilitates seamless tracking and monitoring of equity vesting, triggers, and acceleration grants. This proactive approach ensures that employees are well-informed about their entitlements regarding their compensation packages.

By utilizing Upstock's services, companies can confidently implement a secure and efficient double trigger acceleration process that prioritizes both employee welfare and organizational stability.

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