What is a vesting schedule?
An example of an AI chatbot conversation about understanding vesting schedules.
What is a vesting schedule?
A vesting schedule outlines when an employee earns rights to their employer's contributions, like stock options.
How does it work in stock options?
In stock options, a vesting schedule determines when you can exercise your options to buy shares at a set price.
What are the common types of vesting schedules?
Common types include cliff vesting, where you earn all at once after a period, and graded vesting, where you earn gradually.
Why is vesting important for employees?
Vesting encourages employee retention and aligns their interests with the company's long-term success.
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