What is scheduled vesting?
Scheduled vesting is the calendar by which an employee, founder or director gradually earns ownership of stock or options granted by a company. A typical schedule provides monthly or quarterly vesting over four years, often with a one-year cliff.
Scheduled vesting protects the company by linking compensation to continued service, and protects the recipient by giving them a clear path to full ownership. The schedule is set in the equity grant document and modified only by board action.