Career GlossaryVesting Schedule
Career Definition
What is Vesting Schedule?
The timeline over which an employee earns full ownership of stock options, RSUs, or 401(k) employer contributions.
In-Depth Definition
The standard vesting schedule for equity is 4 years with a 1-year cliff: you earn 0% for the first 12 months, then 25% at the cliff, with the remainder vesting monthly or quarterly over the next 3 years.
For 401(k) matching, vesting schedules vary: some employers offer immediate vesting, while others use graded vesting (20%/year over 5 years) or cliff vesting (100% after 3 years).
Why Vesting Schedule Matters in 2026
Leaving a company before your equity vests means forfeiting unvested shares. Understanding your vesting schedule helps you time career moves to maximize total compensation.