Say it like this
- My equity vests over four years
- I have a one-year cliff before vesting begins
- After the cliff, my shares vest monthly
Use it at work
Offers
- Vesting is over four years with a one-year cliff.
- When does vesting start?
Understanding
- After the cliff, shares vest every month.
- What happens to unvested shares if I leave?
Negotiating
- Can vesting start from my start date?
- Is there faster vesting for refresh grants?
Don't say this
Receiving equity and owning vested equity are different. You must wait for the vesting schedule.
Don't mix it up
| Term | What it is | Who writes or uses it | When |
|---|---|---|---|
| vesting | Shares becoming yours over time | HR, finance | Years |
| cliff | Wait before any vesting | HR | First year |
Practice
Try it
4 quick exercises
1. You are explaining your equity package to a friend. Which sounds most natural?
2. I cannot sell my shares yet because they have not _______ .
3. Which sentence uses vesting incorrectly?
4. Rewrite this in natural tech English using vesting: 'Over four years, I will gradually own the shares they gave me at the beginning.'
Say it out loud
Phrase 1 of 3
"My equity vests over four years"
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More about vesting
Real examples(3)
- in a job offer negotiation
"The offer includes 50,000 RSUs with a four-year vesting schedule and a one-year cliff."
- in a team meeting
"If you stay through the vesting period, you will own a meaningful portion of the company."
- in an HR discussion
"Your vesting begins on your start date, and you will receive your first vesting after 12 months."
More mistakes(2)
Handle with care. Often confused with equity or stock options. Vesting is the process/schedule by which you earn the right to those assets, not the assets themselves.
- ✕After my vesting, I cannot sell my shares.✓After my equity vests, I can choose to sell my shares.
Vesting means you earn the right to own and control the shares, including selling them.
- ✕Vesting and stock options are the same thing.✓Vesting is the schedule; stock options are the benefit you're vesting into.
Stock options and RSUs are the types of equity. Vesting is the process of earning them over time.
Other forms(3)
- vesting noun
"The vesting schedule is important to understand before accepting an offer."
- vest verb
"Your shares will vest monthly over the next four years."
- vesting (attributive) adjective
"The vesting period determines when you own your equity."
Often used with(4)
- vesting schedule · The timeline or plan for when equity vests (e.g., monthly, quarterly, annually).
- vesting cliff · A waiting period before any equity vests (commonly one year in tech).
- vest over · Used with time periods: shares vest over four years, two years, etc.
- accelerated vesting · When vesting happens faster than scheduled, often after a company acquisition or termination.
Similar words(2)
- earn (your equity) · Less formal; means the same but used more conversationally.
- cliff · Refers to the waiting period; not a full synonym but closely related.
Opposites(3)
- forfeit
- unvested
- lose your equity
Questions(3)
- What does vesting mean in tech jobs?
- Vesting is the process by which you gradually earn the right to own company equity (stock options or RSUs) over time. Instead of receiving all your equity immediately, you earn it according to a schedule, usually monthly or quarterly. Common schedules are four years with a one-year cliff, meaning you own nothing for the first year, then 25 percent after one year, then the remaining 75 percent gradually over the next three years.
- What happens if I leave before my equity vests?
- If you leave the company before your equity vests, you forfeit the unvested portion. For example, if you have a four-year vesting schedule and you leave after two years, you keep the equity that has vested in those two years, but you lose the remaining half. This is why vesting schedules can be a strong incentive to stay with a company.
- Is vesting the same as stock options?
- No. Stock options and RSUs are types of equity compensation. Vesting is the schedule or process by which you earn those benefits over time. You can vest into stock options, RSUs, or other equity grants. Think of vesting as the timing mechanism for when you own your compensation.
