Definition, Meaning & Synonyms

vesting

noun

/ˈvɛstɪŋ/

Definition

Vesting refers to the process by which an individual gains full ownership of assets or benefits, typically in relation to a retirement plan or stock options.

Examples

After five years of service, the employee’s stock options will begin vesting.
The vesting schedule ensures that workers earn their retirement benefits gradually.
She was excited to see her shares vesting after the company’s success.

Meaning

In legal and financial contexts, vesting is the establishment of a right or entitlement to something, such as a pension or stock options, after certain conditions are fulfilled.