4 ms·

4-year cliff?

• mrep 5y ago
  Most tech companies give you a large grant when you join, say 16x that vest 1/4 per year so 4x per year. Then, every year after that they usually give you another 4 year grant but usually at about 1/4 the initial one so 1x per year. Thus, your total amount of stock vesting is in this example would be 4 for the first year, 5 for the second, 6 for the third, and 4 for the 4th. This also gets more extreme with stock appreciation because the first grant being the largest is also the oldest so has the most time to appreciate in value. Me for example, the value of my vesting equity per year will drop 30% once I hit my cliff next year.