Vesting Schedule
A vesting schedule outlines the timeline over which an employee earns their equity or stock options, typically used in venture capital-backed startups. This structure incentivizes employees to remain with the company and contribute to its long-term success. Vesting schedules are crucial for aligning employee interests with company growth, often playing a key role in talent retention and motivation.
Key Takeaways
- Timeline for earning equity or stock options.
- Common in VC-backed startups.
- Incentivizes long-term commitment and contribution.
- Important for talent retention and motivation.
