Equity Vesting Schedule
Content
Definition
Equity Vesting Schedule outlines the timeline and conditions under which equity awarded to employees or founders becomes fully owned and exercisable.
Usage and Context
An equity vesting schedule is common in startups. It motivates employees to stay longer by gradually giving them company shares.
Frequently asked questions
- What is the vesting schedule for founders agreement? The vesting schedule for founders outlines when and how they get full ownership of their equity. It often takes years.
- What is the vesting period for employees? The vesting period for employees is the time they must work to earn their equity. This period usually spans several years.
- What is the maximum vesting period? The maximum vesting period can vary. It often stretches up to four or five years in many companies.
Benefits
Equity Vesting Schedule helps keep the team committed for longer. It also rewards them for their contributions to the company`s growth.
Conclusion
Equity vesting schedules align the interests of employees and the company. They encourage long-term commitment and reward contributions.
