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by Undo Capital
December 15, 2025
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What Is Vesting Schedule?

A vesting schedule is a timeline that determines when an individual earns the right to receive shares or options, typically over months or years.

Vesting Schedule Meaning

The vesting schedule meaning centres on rewarding long-term commitment and aligning equity with ongoing contribution. To define vesting schedule in practice, companies set structured milestones, such as monthly, quarterly or annual vesting, often starting with a one-year cliff before regular vesting continues. Vesting schedules can be time-based, performance-based or hybrid, shaping how equity is released to founders, employees or advisors. A clear vesting schedule definition is crucial because it protects the company from granting full ownership to people who leave early, while motivating talent to stay and build value. A vesting schedule stands for fairness, retention and structured equity allocation.

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Disclaimer: Our services are designed to assist startups and businesses with company formation, legal agreements, and funding-related documentation. We do not provide investment advice, financial advice, or tax advice, nor are we regulated by the Financial Conduct Authority (FCA). Participating in startups and early-stage enterprises carries inherent risks, including limited liquidity, absence of dividends, potential loss of investment, and dilution. Any decisions regarding investments should be made independently by the investor as part of a well-diversified portfolio.