Lockups and Cliff Periods Explained
Understanding Lockups and Cliff Periods in Employee Stock OptionsEmployee stock options are a common form of compensation offered by many companies to attract and retain talent. One important aspect of employee stock options is the concept of lockups and cliff periods. Lockups refer to the period of time during which employees are unable to sell or transfer their stock options. This is usually put in place to encourage employees to stay with the company for a certain period of time. Cliff periods, on the other hand, are specific dates on which a certain percentage of the stock options become available to the employee. This can be a significant milestone for employees as it allows them to realize the value of their stock options.
It is important for employees to understand the terms of th...








