Share Vesting
Content
Definition
Share Vesting is the gradual granting of equity to employees over time, ensuring they remain committed to the company for a certain period. This mechanism helps startups retain talent by tying their rewards to the company`s long-term success.
Usage and Context
Share vesting is a process where employees gradually receive equity over time, encouraging long-term loyalty.
Frequently asked questions
- What is the meaning of vesting of shares? Vesting of shares is the process where employees gain ownership rights to shares over time, as part of their compensation.
- What does vesting mean for employees? Vesting is the process through which employees earn the rights to their shares or stock options over time, often to encourage them to stay with the company.
- What is the vesting period for company shares? The vesting period is the duration employees must wait before they can fully own or exercise their company shares.
Benefits
Share vesting gradually grants equity to employees over time to ensure long-term commitment and retention.
Conclusion
Share vesting gradually gives employees equity over time, encouraging loyalty and long-term commitment.
