vesting

This term is primarily used in corporate law, human resources, and financial planning. It describes a conditional ownership structure where a benefit is promised but not immediately owned, serving as a retention tool to encourage employees to remain with a company for a set duration.

In a legal or financial context, the term carries a connotation of security and permanence. Once an asset is "vested," it is no longer subject to forfeiture if the employee leaves the company, shifting the status of the benefit from a contingent promise to a guaranteed right.