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Cliff Vesting

A type of vesting schedule in which an entire grant of stock options or restricted stock/RSUs vests at once after you have met the vesting requirements, which typically involve length of employment, performance goals, or a combination of the two. This is contrasted with graded vesting, in which the grant vests incrementally upon the serial achievement of several time- or performance-related goals. Grants can have cliff vesting for the initial portion and graded vesting thereafter.

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