A core attribute of most Equity Compensation is the concept of vesting, which conditions the full ownership of the equity awards on the employee's compliance with certain covenants. The vesting terms reinforce the incentive objective of equity awards by promoting retention while providing the employee with a disincentive to engage in certain detrimental behaviors during a set time period. These covenants typically come in two forms. The first form requires an employee to retain all or a portion of awarded shares until the employee reaches prescribed levels of stock ownership (ownership guidelines), reinforcing the link to shareholders. The second covenant requires a forfeiture of the shares if the employee elects to engage in certain detrimental behaviors during a specified period of time. The most common of these are the conditions on restricted stock, which require employees to remain employed with the company for a certain period of time after the shares are awarded, but before the shares vest and provide full ownership. If an employee voluntarily leaves the company during the restriction period to work elsewhere, typically, the employee forfeits the opportunity to obtain full ownership of the shares. The result is different for an employee who retires from a company and continues to honor the covenants during the vesting period. In retirement, the company may prorate the vesting of unvested shares based on the amount of time since the award was granted or allow all outstanding restricted stock to continue to vest in retirement, giving the retiring employee greater ownership after the restricted period.