Glossary · Employee equity
Vesting cliff
A period at the start of a vesting schedule — often one year — where nothing vests until the cliff date hits, then a chunk vests at once. After that, vesting usually continues monthly or quarterly.
Related: Stock options · Founder vesting · Post-termination exercise
A bit more nuance▾
- Cliffs protect the company from granting meaningful equity to people who leave in month three.
- They can feel harsh — some teams prorate or negotiate shorter cliffs for senior hires.
Go deeper▾
Discussion questions▾
- What cliff length is fair for your market’s hiring norms?
- How do you talk about cliffs in offer letters without scaring great candidates?
Educational reference only — not legal, tax, or investment advice. Terms vary by country and deal; ask a qualified professional when it matters.