Option Vesting Schedule
Content
Definition
The Option Vesting Schedule is the timetable over which startup employees or founders earn the rights to exercise their stock options.
Usage and Context
Frequently asked questions
- What is the vesting schedule for options? The vesting schedule for options is a timeline that dictates when employees or founders can exercise their stock options, typically over several years.
- What is the vesting schedule in a startup? The vesting schedule in a startup outlines the period over which employees or founders earn their stock options, often with a standard schedule of four years and a one-year cliff.
- What is the vesting schedule for founders? The vesting schedule for founders is a similar timetable that determines when they earn the right to their stock options or shares, ensuring their commitment to the company`s long-term growth.
Benefits
An option vesting schedule encourages long-term commitment, aligns interests between the company and its employees or founders, and helps retain key talent.
Conclusion
The Option Vesting Schedule is a timetable over which employees or founders earn the rights to exercise stock options, promoting long-term commitment and alignment with the company`s goals.
