vested

Vested is an adjective used to describe rights, interests, or benefits that are secured and enforceable, typically as a result of fulfilling specified conditions or by operation of law. In general use, something is vested when it is established in a way that cannot be easily removed or altered.

The term derives from the sense of investing or clothing someone with authority, ownership, or status. In legal and financial language, vesting marks the point at which a right becomes binding and irrevocable, rather than dependent on future events or actions.

In property and trusts, a right is vested when ownership or entitlement is fixed and not contingent on further conditions. By contrast, a contingent right depends on the occurrence of certain events. Vesting can be partial or complete, and it can occur over time or upon achievement of performance criteria.

In employment and benefits, vesting describes when an employee gains an unconditional right to employer-provided benefits, such as retirement funds or stock options. Vesting schedules can be time-based, service-based, or a combination, with concepts like cliff vesting (all rights vest at once after a threshold period) and gradual vesting over successive intervals. Leaving before vesting generally means forfeiture of unvested benefits.

In equity compensation, stock options and restricted stock units typically vest over the employment period or upon meeting performance targets, after which they may be exercised or received subject to plan terms.

A "vested" interest or right is often contrasted with an "unvested" or contingent interest, which remains dependent on future conditions. The phrase vested interest also denotes a personal stake in a matter or outcome.