Below you'll find a list of all posts that have been tagged as “vesting cliff”
A vesting schedule dictates when a founder (or employee) has full ownership rights in the company. This schedule is typically based on duration with the company. For example, if we use a four year vesting schedule with a one year vesting cliff; if a founder leaves within the first year they receive no shares. After the first year, the shares …
What happens if a founder leaves (or dies) before putting in the hard work necessary for the company to be a success? If that founder has full ownership of his or her stock, then you, as the remaining owner(s), will be required to pay despite the lack of contribution to the success. When should a vesting schedule be considered? Without …
