How long is a piece of string? Choose your vesting period based on the incentives you wish to give the recipient. Put another way-- first, figure out exactly

How long is a piece of string? Choose your vesting period based on the incentives you wish to give the recipient. Put another way-- first, figure out exactly what it is you are trying to encourage/discourage, and once you have that in mind, pick a vesting system that fits. If, for example, your goal is to keep a key employee on board for a long time, you might designate a chunk of shares to them, and vest them in 20% increments on an annual basis. If the person leaves after 3 years, they get 60% of the shares. Etc. Note that depending on your jurisdiction, there may be tax implications of any kind of stock option plan-- be sure to check with your lawyer/financial advisor before finalizing any arrangements.