A new employee who just got an offer letter and is seeing the word "vested" for the first time, trying to understand what it means for them personally.
What Does "Vested" Mean for My Stock?
You saw the word in your offer letter. Here's what it actually means for you, before you sign anything.
See what "vested" will mean for your specific offer, in plain terms.
If your offer letter mentions stock that "vests" over time, it means you don't own all of it on day one — you earn the right to it gradually, usually tied to how long you stay.
The Basic Idea
"Vested" means the shares (or options) are officially, unconditionally yours — no longer contingent on continuing to work there. Unvested shares are promised but not yet earned; if you leave before they vest, you typically forfeit them.
Why This Matters More Than It Sounds
The vesting schedule directly determines how much of your equity offer is "real" at any point in your tenure. A grant that sounds impressive on paper can mean very little if you leave after six months of a four-year schedule with a one-year cliff.
Frequently Asked Questions
If my stock is "vesting," do I own it yet?
Not the unvested portion. You own whatever has already vested according to your schedule; the rest remains contingent on staying employed until each future vesting date arrives.
- Ask for your specific vesting schedule, not just the total grant size
- Check whether there's a "cliff" before anything vests at all
- Vested and unvested amounts should both appear on your cap table statement
What happens to unvested stock if I leave the company?
In almost all cases, you forfeit unvested shares or options when you leave, regardless of the reason. Only the portion that had already vested by your last day is yours to keep or exercise.
- This applies whether you resign or are let go, in most standard agreements
- Some agreements include acceleration clauses — ask if yours does
- Get your exact vested amount in writing before your last day
The Lovie Advantage
Founders using Internal Link: Lovie Cap Table Management give every employee a live view of exactly what's vested versus unvested at any moment — not a static number from a PDF offer letter that goes stale the day after signing.
Trying to understand the exact schedule mechanics, not just the definition? See Internal Link: How a Vesting Schedule Actually Works. For general background on equity compensation terms, the National Venture Capital Association's model legal documents is a useful reference.
Understand Your Grant
See what "vested" will mean for your specific offer, in plain terms. Start Free with Lovie