Vesting schedule

Vesting schedule — a motivation program established by an employer to give employees the right to certain asset classes. Employers use such type of incentive to reward loyal employees who remain with the company for a long period. There are 3 types of vesting schedules: milestone-based vesting (based on the achievement and performance of certain milestones in a company); time-based vesting (employees earn their percentage of stock options over time according to a cliff or schedule); hybrid vesting.