What is a Vesting Schedule?
A vesting schedule defines when you receive your RSU shares over the life of a grant. RSUs are typically granted all at once (e.g., "$200,000 over 4 years") but delivered in instalments according to a schedule.
Most schedules also include a cliff — a minimum period (usually 1 year) before any shares vest. If you leave before the cliff, you receive nothing. After the cliff, vesting usually continues monthly or quarterly.
The Three Common Schedule Types
Even 4-Year Vesting (25/25/25/25)
The most widely used schedule. After a 1-year cliff where 25% vests, the remaining 75% vests evenly over the following 3 years — typically monthly or quarterly.
Common at: most public tech companies, financial services firms, enterprise software.
Front-Loaded (38/32/20/10)
More equity vests in the early years, less later. A common front-loaded pattern distributes roughly 38% in Year 1, 32% in Year 2, 20% in Year 3, and 10% in Year 4. Some companies use variations like 40/30/20/10 or 33/27/22/18. The defining characteristic is that most of the value lands in Years 1 and 2.
Commonly used by: companies with front-loaded schedules across the tech industry, particularly those competing for senior hires.
Back-Loaded (5/15/40/40)
Much less equity in Years 1 and 2, most of the value in Years 3 and 4. A common pattern is 5% in Year 1, 15% in Year 2, then 40% in each of Years 3 and 4. This structure is designed to strongly reward employees who stay for the full 4 years.
Commonly used by: companies with high-value RSU grants who want strong retention incentives.
Side-by-Side Comparison: $200,000 Grant
| Year | Standard (25/25/25/25) | Front-Loaded (38/32/20/10) | Back-Loaded (5/15/40/40) |
|---|---|---|---|
| Year 1 | $50,000 | $76,000 | $10,000 |
| Year 2 | $50,000 | $64,000 | $30,000 |
| Year 3 | $50,000 | $40,000 | $80,000 |
| Year 4 | $50,000 | $20,000 | $80,000 |
| If you leave after 2 years | $100,000 | $140,000 | $40,000 |
Assumes flat stock price. Actual values will vary with stock price at each vesting date.
Model Your Vesting Schedule
The RSU Vesting Calculator includes preset buttons for each of these schedule types. Enter your grant details and click a preset to instantly model different scenarios.
Frequently Asked Questions
What is the most common RSU vesting schedule?
The most common schedule is 4-year even vesting with a 1-year cliff: 25% vests after your first year, then 25% per year for the following three years. This is the standard at many public tech companies.
What is a front-loaded vesting schedule?
A front-loaded schedule gives you more RSUs in the earlier years of your grant. A common pattern is roughly 38/32/20/10 across Years 1–4. This means you earn most of your equity in Years 1 and 2, with less in Years 3 and 4. Some companies use this to make early years more competitive and to encourage joining.
What is a back-loaded vesting schedule?
A back-loaded schedule gives you less equity in Years 1 and 2, and much more in Years 3 and 4. A common pattern is 5/15/40/40. This is used by some companies to encourage longer tenure — employees who leave early receive much less of their grant.
Does the vesting schedule affect the total value of my RSUs?
The total grant value is the same regardless of schedule — but the timing affects how much you receive if you leave before fully vesting, and how much your RSUs are worth due to stock price changes over time. A front-loaded schedule gives you more shares when the stock might be lower; a back-loaded schedule gives you more shares when the stock might have grown.
What happens if I leave before all my RSUs vest?
If you leave before fully vesting, you forfeit all unvested RSUs. Only the shares that have already vested (and cleared the cliff) belong to you. This is why understanding your vesting schedule matters before making a career decision.