vesting period
Equity earning interval
A vesting period is the time an employee must wait before gaining full ownership of employer-contributed benefits—typically stock options, retirement contributions, or equity grants.
Until the period ends, leaving the company means forfeiting some or all of these benefits: After a three-year vesting period, the shares are fully yours.
The practice encourages employee retention.
- golden handcuffsFinancial incentives preventing departure
- employee benefitsNon-wage workplace compensation
- stock optionsContracts to purchase shares
- pension plansEmployer-sponsored retirement savings
- deferred compensationIncome paid after earning
sign on bonus · golden parachute · forfeiture · contract terms · accelerated · performance incentives · unvested · contract law · retirement age · 401(k) · severance packages · loyalty rewards · superannuation · sunset clauses · securities law · probationary periods · cliff · fiduciary duty
- retirementretirement, retire, retirement age, retirees, retirement income
- time periodsday, year, month, week, hour
- retirement savingsretirement savings, retirement funds, 403b, retirement account, retirement fund
- stock optionsstock options, strike price, ISO, ISOs, in the money
- tokenomicstokenomics, burning, airdrop, airdrops, presale
- insuranceinsurance, coverage, auto insurance, life insurance, home insurance