vesting schedule

A vesting schedule is a timeline that determines when an employee or founder earns full ownership of their company-provided assets, such as stock options, restricted stock, or employer-matched retirement contributions. Rather than granting total ownership immediately, companies use these schedules to incentivize long-term commitment and protect the "cap table" from being diluted by individuals who leave shortly after joining. Most startups use a time-based vesting structure, while some incorporate milestone-based triggers tied to specific business goals. If a participant leaves the company before a portion of their assets has vested, they typically forfeit those unvested benefits back to the company.