What is a Vesting Cliff?
Vesting Cliff
A Vesting Cliff is a specific milestone at the beginning of a vesting schedule during which no equity is earned until the duration is completed.
Frequently Asked Questions
Q:What is the industry standard vesting cliff?
A one-year cliff is the industry standard for both founders and early employees.
Q:What happens if an employee leaves before the cliff?
They leave the company with zero vested shares or options, protecting the startup from short-term departures.
Quick Facts
- CategoryLegal
- Key ApplicationEmployment agreement drafting and retention planning
Coverage Trend12 Weeks
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