Vesting Glossary

Browse 5 vesting terms defined in plain English, from the cultural dictionary of computing.

5 Vesting Terms

Cliff: The initial period (typically one year) of a vesting schedule during which no equity vests. If you leave before the cliff, you get nothing. The startup's...
Cliff Vesting: A vesting structure where no equity vests until an initial threshold date, after which a block vests at once and the rest continues on the normal schedule....
Equity Vesting: The schedule by which ownership rights are earned over time rather than granted all at once. Vesting aligns incentives by making continued contribution a...
Stock Vesting: The process by which ownership rights in stock or options are earned over time rather than all at once. Vesting schedules align contribution with ownership and...
Vesting Schedule: The timeline and structure that determine when equity or options become earned over time. Vesting schedules typically include a cliff and ongoing periodic...