Glossary

Glossary

Cliff Vesting

A feature of some stock option plans and pension plans. Whenused in stock options, all stock options granted by the employer are vested(become the property of the employee) after a certain specified date, ratherthan accruing gradually. When used in pension plans, all matching contributionsprovided by the employer become the property of the employee after a certainspecified date, rather than accruing gradually.

See Stock option.