What is Double-Trigger Acceleration?
Equity that accelerates only when two things happen - typically an acquisition plus losing your job.
Double-Trigger Acceleration: definition
Acceleration provisions decide what happens to unvested equity in an acquisition. Single-trigger acceleration vests equity on the change of control alone, which acquirers dislike because it can dissolve retention incentives. Double-trigger requires two events - the acquisition and, typically, a termination without cause or a resignation for good reason within a window afterward - so employees are protected if they lose their job in the deal, while those who stay keep vesting normally.
- Trigger 1: a change of control, such as an acquisition or merger
- Trigger 2: involuntary termination (or resignation for good reason) within a window
- Both must occur for the unvested equity to accelerate
- Balances employee protection with acquirer retention needs
How Fintra handles it
Fintra equity management records each grant vesting terms, including acceleration provisions, so the treatment in a change of control is documented rather than reconstructed from scattered agreements. When triggers are met, the accelerated vesting can be reflected in the cap table and equity records, with any change reviewed and approved by a named human.
- Acceleration terms recorded per grant on the cap table
- Change-of-control and termination treatment documented in advance
- Accelerated vesting reflected with human approval
Worked example
Frequently asked questions
What is the difference between single-trigger and double-trigger acceleration?
Single-trigger acceleration vests equity on one event, usually the acquisition itself. Double-trigger requires two - the acquisition and a subsequent qualifying termination. Double-trigger is more common because it protects employees who lose their jobs while preserving retention for those who stay.
Why do acquirers prefer double-trigger acceleration?
Because single-trigger vesting can wipe out the retention value of equity the moment a deal closes, leaving the acquirer with little to keep key people. Double-trigger keeps employees vesting after the acquisition unless they are let go, aligning retention with the acquirer needs.
What counts as the second trigger?
Typically an involuntary termination without cause, or the employee resigning for good reason (such as a demotion or forced relocation), within a defined window after the change of control - often 12 months. The exact definitions are set in the equity or employment agreement.
Does double-trigger acceleration apply to all equity?
It applies to whatever grants specify it in their terms, and the amount accelerated can vary - full acceleration of all unvested equity or partial. The provisions are negotiated and documented per grant, which is why keeping accurate equity records matters.
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