There’s both a logical and an emotional component to this. Logically the team would understand why the employee was terminated right before vest. Emotionally ho

There’s both a logical and an emotional component to this. Logically the team would understand why the employee was terminated right before vest. Emotionally however it will gnaw at them, wondering if that could happen to them. In my opinion I’d make it clear that the termination and the equity decisions are separate, that it was a bad fit but that you are building a culture of doing right by people. That doesn’t mean eliminating vesting, it means that you approach these exceptions on a case by case basis. I’d say 6 months vest would be fair, given the performance management issues - and it strikes the right balance showing you won’t be pushed around and that low performers will not be treated the same way as high performers.