Vesting

Earning ownership of equity gradually over time.

Vesting is the schedule by which an employee or founder earns full rights to granted equity, commonly over four years with a one-year cliff. It incentivizes people to stay; leaving early forfeits unvested shares. It aligns long-term interests between talent and the company.

His equity followed a four-year vesting schedule with a one-year cliff, so leaving early forfeited most of it.