Cofounders vesting schedule and how it works
- Vesting schedules ensure gradual acquisition of ownership based on contributions.
- They protect companies from uncooperative founders by reclaiming unvested shares.
- Common clauses include accelerated vesting, vesting frequency, and termination clauses.
The implementation of vesting schedules is a critical aspect of startup governance that not only incentivizes long-term commitment from founders and employees but also safeguards the company's equity structure. However, careful consideration must be given to the design of these schedules to avoid potential pitfalls such as discouraging top talent or creating inequities among co-founders. Engaging legal expertise in this process is vital to ensure that the agreements are fair and compliant with regulations.
