Vesting Commencement Date

The vesting commencement date is the date your vesting schedule is measured from. It is often the same as the grant date, the day the board or compensation committee formally approves your grant, but it doesn't have to be. A new hire's grant may not be approved until weeks after they start, so many companies set the vesting commencement date to the executive's start date instead. Every vesting date is counted from the vesting commencement date. With a one-year cliff vesting period, your first tranche vests on the first anniversary of the vesting commencement date.