How long is the standard Vesting and Holding time period for Incentive Stock Options and Employee Stock Purchase Plans?
August 18, 2000
Subject: incentive stock option query
Date: Wed, 5 Jul 2000
To whom it may concern,
I was wondering, how long is the standard or common Vesting and Holding time period for both the Incentive Stock Options and Employee Stock Purchase Plans? Please help and let me know.
Date: 28 Jul 2000
The most common vesting schedules I see for employee stock options are over four or five year periods.
Typically there is a “cliff” vest (20% or 25%) after the first year and then a pro-rata fraction monthly after the first year.
These are only customary and are not legal requirements.