What is a cliff in stock option vesting?

A cliff represents the minimum duration an employee must remain with the company before receiving the first batch of vested options. This period can vary significantly between companies and is often expressed in months. At the end of the cliff, a predetermined portion of the granted options becomes available for vesting. For example, if the cliff is set at 1 year and the employee leaves before the cliff, they may forfeit any vested options.

All FAQs Published at: 2024-03-24