Meaning & use
vesting
Last updated
The process by which an employee earns a non-forfeitable right to employer-provided benefits, such as retirement funds or stock options, typically after a set period of service.
See it in a sentence
After four years of vesting, Maria owned all of her company stock options outright.
The pension plan has a five-year vesting schedule, so employees who leave earlier forfeit part of the benefit.
A note on using this word
Common in employment and retirement-plan contexts; the older, unrelated sense of 'vest' means to clothe or dress someone in ceremonial garments.
Words with a similar meaning
accrual
Choose a synonym to suit the sentence. Meanings can overlap without being identical.
Words with an opposite meaning
forfeiture
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