Vesting Cliff

A vesting cliff is the period of time before you acquire ownership rights to the equity portion of your total compensation.

What is a vesting cliff?

A vesting cliff is the period where time is accruing, but you are not yet being granted any of the ownership of equity.

Are there ways to expedite a vesting cliff?

No, vesting cliffs are pre-defined before the contract is signed.

Are vesting cliffs common?

Yes, almost all employees who are granted to receive equity have a vesting cliff baked into the contract. This is to align the incentives of the employee with the company, to try and retain the employee for a key amount of time.

What is the standard vesting cliff?

The most common term for a vesting cliff is one year.

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