Vesting

Vesting is the process by which an employee (or founder) earns full ownership rights over their shares, stock options, or other benefits over a specified period of time. It's a fundamental mechanism used, particularly in startups and high-growth companies, to incentivize long-term commitment and align the interests of employees with the company's success. Instead of receiving all equity upfront, employees gradually gain control of their stock, typically contingent on continued employment or achieving specific milestones.