Requisite service period definition

What is the Requisite Service Period?

The requisite service period is the period of time that an employee must work for an employer before being able to receive a stock grant. This service period is designed to retain employees for an extended period of time, since they will lose the stock grant if they leave the company prior to the end of the period.

This service period may be explicitly stated in the related payment award documentation, or it may be inferred from the documentation. The requisite service period used by a business tends to be consistent across the stock grants that it awards.

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