Stock options that vest in the future create a mobility barrier for the employee receiving them.

Question

Quizplus · Accepted Answer

Stock options that vest in the future are a form of incentive for an employee to remain with a company until they vest, which can create a barrier to mobility. If the employee leaves the company before the options vest, they forfeit the opportunity to receive the benefit of the options. This can limit an employee's ability to pursue other career opportunities.

Stock Options That Vest in the Future Create a Mobility