Restricted stock plans normally require that an executive remain with a company for a number of years after the grant in order for him or her to cash them in.

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Under a restricted stock plan, a company gives shares of stock, subject to certain restrictions, to participating managers. The major restriction of most plans is that the shares are subject to forfeiture until they are "earned out" over a stipulated period of continued employment.

Restricted Stock Plans Normally Require That an Executive Remain with a Company