What is Cliff Vesting? How does it work?

Vega Equity04 Mar, 2024Business

Not to be confused with the Cliff period which is the time period between the ESOP grant date and the ESOP vesting start date, cliff vesting is a type of vesting schedule where an employee doesn’t acquire any stock options before a specific date. After that date, the stocks are 100% fully vested. Before we go into the complete details of cliff vesting, how it differs from usual vesting schedules, and its benefits, let's take a small glance at the types of vesting schedules.