Vesting Schedule

A vesting schedule is a timeline that determines when you gain full ownership of certain benefits, like employer-provided stock or retirement contributions. Instead of receiving everything immediately, you earn your rights gradually over time, encouraging retention. For example, if you receive stock that vests over four years, you might earn 25% each year. Until it’s fully vested, you can’t sell or transfer these benefits. Once vested, they’re yours outright, even if you leave the company. This system aligns employee and employer interests, rewarding loyalty and long-term commitment.