Share Vesting

What is Share Vesting?

Share vesting is when ownership of shares or share options is earned gradually, often over time or after meeting certain conditions.

Think of it like this…

It’s equity you unlock in stages — not all at once.

Why does it matter?

  • Encourages long-term commitment from employees or founders
  • Protects the company if someone leaves early
  • Common in startup and employee share schemes

Best practice

Document vesting terms clearly in an agreement and issue shares as they vest.

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