Glossary → Employment
Employment

Vesting

Earning full ownership of equity or benefits over time.

Vesting is the schedule by which stock options, RSUs, or retirement contributions become truly yours. Until they vest, you can lose them by leaving. A typical startup schedule is four years with a one-year cliff.

In practice

“Options vest 25% after one year, then monthly over the following three years.”

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The cliff and what leaving costs you

The “cliff” means nothing vests until you hit the first milestone — leave at month eleven and you get zero. After that, vesting is usually gradual. Check what happens on termination, on a company sale (acceleration), and whether you must exercise options quickly after leaving.

See this in your own document: run a free analysis — findings quote the exact language.

What it looks like in a real document

“Unvested shares are forfeited upon termination for any reason.”

Forfeiture of unvested equity is standard — which is why your vesting date and any acceleration-on-acquisition terms are worth knowing before you leave or a deal closes.