Reverse Vesting is a mechanism where a company has the right to buy back shares from an employee or founder at a nominal price if the individual leaves the company before a set period.

Reverse vesting allows a company to take back shares from an employee or founder if they leave before a certain time.

What is the reverse vesting mechanism? Reverse vesting is a setup where founders earn their shares back over time, usually tied to their continued involvement in the company.

What is the difference between reverse vesting and normal vesting? Reverse vesting requires the employee or founder to earn back shares over time, with a buyback option for unvested shares, while normal vesting grants shares progressively without a buyback clause.

What is reverse vesting of stock options? Reverse vesting is when stock options gradually become fully owned by the employee, but the company can take back shares that haven’t vested if the employee leaves.

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Reverse vesting lets a company reclaim shares from an employee or founder if they leave prematurely.

Reverse vesting lets a company take back shares if an employee or founder leaves before a certain time.