Cap Table Vesting Excel Calculator

Use to calculate vesting quarterly for personnel incentive ESOP plans.

by Alexander Jarvis
Founder at Perfect Pitch DeckFollow 267

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Description
Quarterly vesting means that if you have granted your employee shares, the shares can only be vested after 3 months. This prevents employees vesting their shares after one month and then quitting the company. Quarterly vesting means that employees will have to work for 3 months before being able to leave with all of the shares they have been granted. If the employee leaves before a 3 month time period, they get nothing.

So, from the date the employee's shares are approved and the vesting starts, they will have to wait 3 months to get a quarter of their annual share allocation.

If your company operates on 4 year vesting, each quarter they will receive 1/16 out of the total number of shares they have been promised.

This tool and model will talk you through how to calculate quarterly vesting.

This Best Practice includes
1 Downloadable Vesting Excel Calculator, 1 Explanatory Notes in PDF