Just call us Bond. Amortized bond.
Over 700 finance terms, Shmooped to perfection.
If you're vested, you're wearing a sleeveless jacked. That, or that you've stayed in your job long enough that you get to tap into your stock options.
Hopefully, those meetings with the most neurotic staff on earth and the late nights listening to your co-workers talk about their cats were worth it.
At Shmoop, we pay in three forms: cash, peanuts, and options. Our fearless content leader, Deb, was given 100 options to start at Shmoop (and an enormous bag of peanuts). Her options carried a 5-year vest provision, so that at the end of the first year, she was "vested" into 20 options—meaning that on her 1-year Shmoopiversary, she had the right to buy those options, no matter what.
Then she had 4 more years or 48 more months on that grant of 80 remaining options and she vested a bit each month, until 5 years down the road, she was "fully vested" and could by every one of those 100 options.
In that time, she's only developed a few minor facial tics from dealing with our antics, so we think it's a win for her.