Recent Employee Stock Option Agreement Expert Legal Chats
can you explain my vesting schedule in my option grant?
Employment
Employee Stock Option Agreement
Customer:
can you explain my vesting schedule in my option grant? Hey I work for a tech startup and part of my compensation includes stock options. I got an option grant when I joined, and it mentions a “4-year vesting schedule with a 1-year cliff.” Can you explain what this means? I’m not sure when I actually own the options or how they work if I leave the company early.
Dolan W.
Hello, and thank you for your question! My name is Dolan, and I’d be happy to help with this. I carefully review each question and provide responses based on my years of hands-on experience as a lawyer.
Stock option vesting schedules can be a bit confusing, but I’ll break it down for you. With a “4-year vesting schedule and 1-year cliff,” here’s how it typically works:
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