Vesting Commencement Date
Definition
The date from which your vesting schedule begins counting. This is usually your hire date but can be different — sometimes it is the board approval date of your grant, which can be weeks or months after your start date. The vesting commencement date determines when your cliff hits and when vesting completes.
Real-World Example
You start work on January 15, but the board does not approve your grant until March 1 (next board meeting). Your vesting commencement date is January 15 (per your offer letter), meaning your cliff is January 15 of next year. But if the commencement date is March 1, your cliff is delayed by 6 weeks.
Common Mistake
Assuming your vesting starts on day one of employment. Board approval can take weeks or months. Confirm that your offer letter specifies your start date as the vesting commencement date. If the commencement date is tied to board approval, you may lose weeks of vesting.
Why It Matters
A delayed vesting commencement date pushes back your cliff and completion date. At high-value companies, even a few weeks of delay can mean tens of thousands of dollars in equity timing.
Related Terms
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