Definitions

1. noun

A type of stock option that does not require the holder to buy the underlying stock after the option expires, or a benefit or entitlement that is not vested and cannot be claimed until certain conditions are met.

“The company’s nonvesting stock options were not transferable until the employee left the company’s service.”

2. adjective

Not vested or entitled to a benefit or entitlement.

“Nonvesting benefits are not available to employees who leave the company before meeting the vesting requirements.”