Vesting Schedule

Category: business

A timeline that dictates when an employee or founder officially "earns" their equity grants.

A standard "4-year vesting schedule with a 1-year cliff" means if you leave before 12 months, you get zero equity. After 12 months, you earn 25% of your grant, and the rest accrues monthly over the next three years. It is designed to incentivize talent to stick around for the long haul.

Common Examples

• The board-mandated vesting schedule ensures that the founders are fully aligned with the company’s long-term success over the four-year growth horizon.
• We included a custom vesting schedule in the executive contract to protect the company in case the lead engineer leaves for a competitor mid-project.