What are equity vesting options?
An example of an AI chatbot conversation about equity vesting options.
What are equity vesting options?
Equity vesting options refer to the process by which employees earn their shares or stock options over time.
How does the vesting schedule typically work?
A common vesting schedule is four years with a one-year cliff, meaning you earn 25% of your options after the first year.
What happens if I leave the company before my options fully vest?
If you leave before your options are fully vested, you typically forfeit the unvested shares, but you may keep the vested ones.
Can you explain the difference between cliff vesting and graded vesting?
Cliff vesting means you receive all your options at once after a set period, while graded vesting allows you to earn them gradually.
Are there tax implications when my options vest?
Yes, there can be tax implications when your options vest, depending on the type of options and your country's tax laws.
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