Vesting Schedule
The timeline and cadence at which your equity grant becomes yours (e.g., 4 years with 1-year cliff).
Definition
The vesting schedule defines when and how your equity is earned over time. The industry standard is 4 years with a 1-year cliff and monthly vesting thereafter. Some companies use quarterly vesting, back-weighted schedules (more vests in later years), or 3-year schedules. Your offer letter specifies the exact schedule. Any deviation from the 4-year standard is a negotiation point.
Why it matters
Your vesting schedule determines when you have earned enough equity to make leaving viable. A back-weighted schedule (like Amazon's 5/15/40/40) means most of your equity vests in years 3-4, creating stronger golden handcuffs.
Example
Standard: 4-year vest, 1-year cliff, monthly thereafter. You get 48,000 options. After 1 year: 12,000 vested. After each subsequent month: 1,000 more. After 4 years: all 48,000 vested.