Doubletrigger

Double trigger is a term used in compensation and employment agreements to describe a two-event condition required to activate certain benefits. Specifically, it denotes that benefits—such as severance pay or accelerated vesting of equity—will be paid or vested only after two events have occurred: (1) a change in control of the company, and (2) a qualifying termination of the employee within a defined period after the change in control, or a resignation for good reason within that period. This contrasts with single-trigger provisions, where the change in control alone can trigger benefits regardless of the employee’s subsequent status.

Double-trigger provisions are widely used in executive compensation and in equity plans to protect employees from immediate termination after a sale and to maintain continuity for the acquiring entity. They can include severance pay, continuation of benefits, and acceleration of vesting for unvested stock options or restricted stock. The exact definitions of “change in control,” “termination without cause,” and “good reason” vary by contract and jurisdiction.

Variations exist: some plans require termination within 12 to 24 months after the change in control, others use different timeframes or include pre- or post-event conditions. Some arrangements provide full acceleration, others provide partial or pro rata vesting, and there may be differences in bonus eligibility. Proponents argue that double-trigger structures balance retention with protection against opportunistic post‑sale actions, while critics note they can add complexity and cost to compensation programs.