Vesting

The schedule when your equity grant becomes yours after meeting time or performance conditions.

is the process by which you earn the right to your equity grant. Until shares or units , you may forfeit them if you leave the company or miss performance targets.

Grants often on a schedule, for example, 25% per year over four years, sometimes after a one-year cliff.

For , is usually the key date for wage-income reporting. For options, tax timing depends on exercise and grant type.

Related terms

Educational definition only. Your grant documents, employer payroll, and tax forms control your situation.