The Orioles today announced that they have partnered this season with Chick-fil-A on a promotion called âOâs Days at Chick-fil-A.â During the regular season, there will be one date each month when Orioles fans wearing orange clothing or Orioles apparel can visit any participating Baltimore area Chick-fil-A between the hours of 11:00 a.m. and 8:00 ...
In the case of restricted stock, the former date is generally known as the vesting date and is the date when the employee recognizes income for tax purposes (assuming that the restricted stock is not transferable at an earlier date, which is how employers generally structure their restricted stock awards).
Another example might be a firm that offers employees restricted stock grant on their hire date, with 100% vesting in the stock occurring on the employee's third-anniversary date. This form of vesting is called cliff vesting and means that you have no claim on the items offered until the actual third-anniversary date is reached. If you leave the firm after two years that means you would not be able to take (or cash in) any of your stock grant. An alternative to cliff vesting is graded (or graduated) vesting which is governed by a vesting schedule.