Double-Trigger Acceleration
Accelerated vesting that requires both an acquisition AND termination of the employee.
Definition
Double-trigger acceleration speeds up vesting only when two conditions are met: (1) the company is acquired, and (2) the employee is terminated or their role is significantly changed within a specified period (usually 12-24 months after acquisition). This protects employees from losing unvested equity when they are let go after an acquisition. It is the more common type of acceleration and is considered investor-friendly.
Why it matters
If your company gets acquired and you are laid off, double-trigger acceleration ensures your unvested equity vests immediately. Without it, you could lose years of unvested options. Check your offer letter and option agreement for acceleration terms.
Example
You have 20,000 unvested options when your company is acquired. Six months later, the acquirer eliminates your role. With double-trigger acceleration, all 20,000 options immediately vest. Without it, you would lose them.