Double Trigger Acceleration | Futureproof

Double Trigger Acceleration

Quick Definition

Vesting acceleration that requires both a company acquisition AND termination of employment to trigger.

What is Double Trigger Acceleration?

Double trigger acceleration means equity vesting speeds up only if two events occur: the company is acquired AND the employee is terminated or significantly demoted. Neither event alone triggers acceleration.

Why Double Trigger Matters

Acquirers prefer double trigger because they want to retain key employees after acquisition. If equity fully vested on acquisition alone (single trigger), employees might leave immediately with all their shares.

For employees, double trigger still provides protection. If the acquirer fires you or makes your role untenable within a specified window (usually 12 months), your unvested equity accelerates.

Negotiating Acceleration

Founders often negotiate double trigger acceleration with 25-100% acceleration. More senior employees may have stronger acceleration terms. The specific definitions of "termination" and "change of control" matter significantly.

Formula

Double Trigger Conditions:

Trigger 1: Change of Control (acquisition, merger)
Trigger 2: Involuntary termination within 12-24 months of Trigger 1

Both must occur for acceleration.

Example

A SaaS company employee has:

Unvested Shares: 10,000
Double Trigger: 100% acceleration

Scenario A: Company acquired, employee stays

Result: No acceleration, continues normal vesting

Scenario B: Company acquired, employee laid off 6 months later

Result: All 10,000 unvested shares immediately vest

Scenario C: Employee quits before acquisition

Result: Forfeits unvested shares, no acceleration

Related Terms

Vesting Schedule

The timeline over which equity ownership is earned, typically 4 years with a 1-year cliff before any shares vest.
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Cliff (Vesting)

A waiting period before any equity vests, typically one year, protecting companies from early departures.
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Option Pool

A percentage of company equity reserved for future employee stock option grants, typically 10-20% of fully diluted shares.
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