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Vesting: meaning, definitions and examples

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vesting

 

[ ˈvɛstɪŋ ]

Noun / Verb
Context #1 | Noun

finance agreement

Vesting refers to the process by which an employee earns the right to receive benefits from their employer's retirement plan or stock options after a certain period of time. This concept often applies to defined benefit plans, stock options, and retirement savings plans. With vesting, employees typically must work for a certain number of years before they gain full ownership of certain benefits. It encourages employee retention and aligns their interests with the company's long-term success.

Synonyms

accrual, entitlement, ownership

Examples of usage

  • The employee completed the vesting period for her stock options.
  • After four years of service, he reached 100% vesting in his retirement plan.
  • The company offers a tiered vesting schedule for its employee stock ownership plan.
Context #2 | Verb

legal right

To vest means to grant someone a legal right or privilege, typically concerning property or benefits. In legal terms, once a right vests, it is secured and cannot be taken away. This verb is often used in contexts related to benefits associated with employment or real estate. Vesting is essential in clarifying the rights of parties in a legal agreement, ensuring that individuals understand what they are entitled to over time.

Synonyms

bestow, confer, grant

Examples of usage

  • The company will vest the employee's rights after three years.
  • The court ruled that the property would vest in the beneficiary upon death.
  • She decided to vest her rights to the pension plan.

Translations

Translations of the word "vesting" in other languages:

🇵🇹 conquista

🇮🇳 स्वामित्व अधिकार

🇩🇪 Vesting

🇮🇩 vestasi

🇺🇦 право на власність

🇵🇱 nabycie

🇯🇵 権利確定

🇫🇷 acquisition

🇪🇸 adquisición

🇹🇷 hak kazanma

🇰🇷 권리 확보

🇸🇦 تملك

🇨🇿 nabyti

🇸🇰 nadvobenie

🇨🇳 归属权

🇸🇮 pridobitev

🇮🇸 eignarhald

🇰🇿 иелену

🇬🇪 უფლებების მოპოვება

🇦🇿 mülkiyyət hüququ

🇲🇽 adquisición

Word origin

The term 'vesting' has its origins in the Latin word 'vestire,' meaning 'to clothe' or 'to invest.' It was initially used in legal contexts related to property rights in the English legal system. Over time, particularly in the 20th century, the term evolved to encompass the concept of employees gaining ownership of their benefits from employers. This development was significant in shaping employee compensation packages, particularly in the realm of retirement planning and stock options. The language of vesting became more prevalent as companies sought to incentivize and retain employees by linking their financial rewards to their tenure with the organization.

Word Frequency Rank

At position #13,834, this word is part of sophisticated English vocabulary. It's useful for academic or professional contexts where precise language is needed.