What Is “Reverse Vesting”

"Reverse Vesting" is an expression used to describe a situation in which an employee or independent contractor or consultant receives stock subject to repurchase by the company at an at-cost purchase price, which repurchase right lapses over the vesting period.  Thus, it is the reverse of the typical situation, where the service provider receives a right to purchase stock (an option) which right is not exercisable until the service providers vests.

No related posts.