Post-Vest Holding Requirements: Dos and Don’ts

There are myriad levers to pull and design aspects to refine when designing a long-term incentive award. More recently, a new award feature has entered the conversation: post-vest holding restrictions.

A post-vest holding restriction is a condition of an award that restricts the recipient from selling, transferring, or hedging shares earned for a certain amount of time even after the award has vested. The concept is simple enough, but is it right for your award? In this issue brief, we unpack the dos and don’ts of post-vest holding requirements under a variety of circumstances.