Equity Refresh Grant
Definition
An additional equity grant given to existing employees, typically on an annual basis, on top of their initial hire grant. Refresh grants are designed to maintain competitive total compensation as initial grants vest and to retain high performers. The size of refresh grants varies by company, level, and performance rating.
Real-World Example
You joined with 10,000 RSUs vesting over 4 years (2,500/year). In year 2, you receive a refresh grant of 3,000 RSUs vesting over 4 years (750/year). In year 3, another 4,000 RSU refresh. By year 4+, your annual vesting includes initial + multiple refreshes, potentially exceeding your initial annual vest.
Common Mistake
Leaving a company right after your initial grant fully vests (the "4-year cliff"). Many employees quit at the 4-year mark because their equity drops dramatically. But if you have been receiving competitive refreshes, your annual equity may actually be higher in years 4-6 than in year 1. Run the numbers before deciding.
Why It Matters
Refresh grants are the primary mechanism for long-term retention at tech companies. Understanding how your company handles refreshes helps you make informed decisions about when to stay and when to leave.
Related Terms
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