Startup Terms Glossary
What is a Vesting Schedule?
A vesting schedule is a tool used by startups to define how long an employee must remain with the company before they are fully vested in their options. A vesting schedule also indicates in what increments that vesting increases as time goes on. Some companies grant rights to ownership on a quarterly basis, while others award additional vesting rights only yearly.
Vesting Schedule Examples
Examples of vesting schedule:
- Example 1. A startup company’s vesting schedule is compounded yearly, with a term of four full years for an employee to become fully vested. Their vesting schedule indicates that for each complete year that an employee works for the company, they are granted 25% of the value of their shares.
Here’s another web page about a vesting schedule.
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Morgan S.
Corporate Attorney that represents startups, businesses, investors, VC/PE doing business throughout the country. Representing in a range of matters from formation to regulatory compliance to financings to exit. Have a practice that represents both domestic and foreign startups, businesses, and entrepreneurs. Along with VC, Private Equity, and investors.
"Morgan delivered far beyond the price point. He didn't just review our investor package — he caught gaps two other reviewers missed (including a top-tier venture firm we benchmarked him against), rebuilt the custom documents to professional standard, and added missing closing mechanics we didn't even know we needed: the 83(b) election, escrow instructions, stock assignment. He pushed back on his own client when the documents said otherwise — that's the lawyer you want. §144 analysis citing the 2025 Delaware reform, triple anti-broker-dealer protections, a related-party ARR cap he invented on his own — depth you'd expect at five times the fee, closed out with a proper written memo on firm letterhead. The timeline ran a bit longer than planned in places, but the result was more than worth it: every item closed, every question answered, the whole package consistent and ready to sign. Very happy overall — would hire again, and our next project is already queued."
August 1, 2023
Christopher I.
• Owner and managing attorney at the Irak Law Office in Indiana. • Practice areas include business law, startup formation, contract drafting, and deal structuring. • Passionate about serving entrepreneurs and small business owners. For more, visit https://iraklaw.com
Christi D.
August 1, 2023
Christi D.
Attorney.
Sara E.
Family Law Attorney
August 1, 2023
Timothy J.
Financial Services, Business, Corporate, Personal Injury, and Healthcare. I've represented fortune 100 companies and defended individuals in personal debt litigation. Wide breadth of experience, ready to assist.
August 1, 2023
Mervin F.
Greetings, I am a Miami based attorney, running a solo practice, looking to expand my reach and help some people out.
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