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.