What is a
timetable that specifies when options Vest, or become
exerciseable. A typical vesting schedule is 25%
per year on the anniversary of the grant date. That
means that after one year up to 25% percent of the
options granted may be exercised; after two years,
up to 50%; after three years, up to 75%; after four
years, all of the grant.
As another example, Cliff vesting describes a vesting
schedule in which all options become exerciseable
on a single date.
Vesting and Reverse
Vesting are other examples of vesting schedules.