Cliff vesting

Cliff vesting refers to a specific type of schedule in which an employee becomes fully entitled to certain benefits, such as stock options or employer contributions to a retirement plan, after a specified period of time. Instead of gradually gaining ownership rights over time, employees reach full vesting all at once after a predetermined period known as the "cliff." If an employee leaves the company before the cliff period is reached, they may not be entitled to any benefits. However, once the cliff is passed, the employee becomes fully vested in the benefits.

Banking