A vesting schedule is a timeline that outlines when employees or founders earn their rights to benefits, usually stock options or equity in a company. This process ensures that individuals must remain with the company for a specified period before fully owning their granted shares, aligning their interests with the company's long-term success and mitigating the risk of short-term exits. Vesting schedules play a crucial role in negotiations and structuring of deals, as well as in incentivizing management by fostering a sense of ownership and commitment.
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