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The awards simply vest over time.
Some big investors have called for companies to substitute shares of stock that vest over time for stock options.
Apple is acquiring the two companies for a total of $3 billion, consisting of a purchase price of approximately $2.6bn and approximately $400m that will vest over time.
What's more, the companies say that many pay packages are largely tied to performance, aligning the interests of the chief executive with those of shareholders, and that some headline figures are skewed by the fact that many stock awards vest over time.
A similar adverse tax situation can arise if the shares you receive vest over time, which they typically do.
The purchase price is $130 million, plus $19 million in Monotype stock that will vest over time.
Similar(46)
The deal consideration in the compensation pool vests over time, and the engineers become subject to a covenant not to compete, enforceable even in California because it is connected to the sale of a business.
(Mr. Khosrowshahi is a director of The New York Times Company). His package, reflecting a new five-and-a-half-year contract, was almost exclusively stock that vests over time, so much of its value is closely linked to Expedia's share price.
He drew no salary or benefits, instead collecting stock options that vested over time.
With restricted stock the exec gets his shares up front, but his interest in them is vested over time.
The logic: An angel's slice is based on an actual valuation, and thus is fully justified, while yours vests over time.
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