What is a double trigger option?

Double-trigger acceleration, as the name implies, requires two events to trigger acceleration – most typically the sale of the company and the involuntary termination of the employee, usually within 9-18 months after closing, and in some cases including a short pre-closing window (3 months or shorter) to counter any …

What is a double trigger severance?

Double triggers are the most common approach for CIC severance benefits (over 90% of companies). It allows the executive to voluntarily terminate during a specified period following a CIC and receive CIC benefits, typically the 13th month following the CIC.

What is a double trigger stock?

To begin with, double-trigger acceleration is the partial or full acceleration of vesting of options or stock based on the occurrence of two different events. In this case, each event is a “trigger”, if both events occur, it becomes a “double trigger”.

What is a double trigger RSU?

Double-trigger restricted stock units are those that aren’t taxable until two specific events occur. This differs from most RSUs provided by public companies, where shares are taxable immediately upon vesting.

Do you get double taxed on RSU?

Are RSUs taxed twice? No. The value of your shares at vesting is taxed as income, and anything above this amount, if you continue to hold the shares, is taxed at capital gains.

What is difference between RSU and stock option?

Stock options are paid in stocks, while RSUs are paid in stocks or cash. RSUs are taxed upon vesting. Stock options are typically better for early-stage, high-growth startups. RSUs are generally more common for companies that are late-stage and/or have liquid stock.

What happens to employee stock when a company is acquired?

Exercised shares: Most of the time in an acquisition, your exercised shares get paid out, either in cash or converted into common shares of the acquiring company. You may also get the chance to exercise shares during or shortly after the deal closes.

What is a double trigger shotgun?

Having two triggers makes it easier to choose and use one barrel over the other, allowing the shooter to have a choice of two different chokes or cartridges that can be used depending on the bird.

What’s the point of a double trigger?

GunsOnPegs spoke to some of today’s most popular gunmakers to see what they thought. Having two triggers makes it easier to choose and use one barrel over the other, allowing the shooter to have a choice of two different chokes or cartridges that can be used depending on the bird.

What is the point of double-action?

Double Action Handgun The trigger both cocks the hammer (or striker) of the firearm which prepares for the actual firing to take place and then fires the handgun. For each single trigger pull, the gun is performing two actions, and that’s why it’s called “double” action.

What do you need to know about double trigger acceleration?

Double-Trigger Acceleration: Under a double-trigger acceleration clause, two stated events must take place in order for acceleration to occur. In most cases, the two events are the sale or ownership transfer of the company, and the unjustified termination (termination without cause) of the vesting individual.

What happens when an acceleration clause is triggered?

If your lender notifies you that an acceleration clause has been triggered, you become immediately responsible for paying the remaining unpaid principal on your loan, plus whatever interest has accrued to date. You will not be responsible to pay any interest that would have accrued if the loan had gone to full term.

How does the acceleration clause work in UpCounsel?

Then, the acceleration clause is triggered with the sale of the company, and the founder is immediately vested for three of the four years. Double-Trigger Acceleration: Under a double-trigger acceleration clause, two stated events must take place in order for acceleration to occur.

Why do investors not like single trigger acceleration?

Investors tend to dislike single-trigger acceleration upon a sale out of concern that it will turn off a potential acquirer. An acquirer typically wants to secure the ongoing services of key team members so as to ensure continued performance of the business and smooth integration into the acquirer’s business.