Careers
Vesting Cliff
A vesting cliff is the initial period of a vesting schedule during which no equity vests at all; if the holder leaves before the cliff date, they forfeit the entire unvested grant. After the cliff, a portion vests immediately and the remainder typically vests monthly or quarterly.
The one-year cliff on a four-year schedule is close to a universal standard in venture-backed companies, existing specifically to protect the company (and remaining team) from a hire who leaves within months still walking away with meaningful ownership.
Some later-stage or acquired companies negotiate shorter cliffs, no cliff, or accelerated vesting on acquisition ("single-trigger" or "double-trigger" acceleration) as part of retention or executive offers — cliff terms are negotiable even when a company presents them as standard.
Example
On a standard four-year schedule with a one-year cliff, an employee who leaves after eleven months receives no equity; one who leaves at thirteen months receives roughly 25% plus one extra month.