Vesting

Also called: vesting schedule, vest, vested, founder vesting, four-year vesting, vesting period

Earning your shares bit by bit over time instead of all at once. If you leave early, you keep only what you have earned so far. A 'cliff' is a minimum time you must stay before you earn any.

For example: Two co-founders agree that their shares vest over several years. One leaves after the first year and keeps only the portion earned by then, not the full amount.

Connects to 8

Equity Concept
Stock options Concept
Technical co-founder Concept
Cliff Concept
Equity vs cash compensation Concept
83(b) election Concept
Advisor shares Concept
Founder Concept

This glossary is plain-language orientation, not legal or financial advice. Before you decide on a company structure, a contract, taxes or a fundraising deal, talk with a lawyer or an accountant.