unvested equity forfeiture

Vesting Schedule

Time horizons govern the transfer of ownership from the collective pool to the individual practitioner. Monthly increments typically distribute the total allocation across a four-year window following a cliff restriction. Founders sacrifice accumulated rights if departure occurs prior to the twelve-month threshold because no shares vest early.

That restriction ties operational presence directly to capital accumulation without monetary compensation.

Repurchase Mechanism

Corporate bylaws authorize the board to execute a call option on canceled shares immediately following notice of resignation. Valuation terms limit the payout to the original purchase price paid at founding, which often equates to nominal par value. Legal counsel drafts these provisions into the restricted stock purchase agreement during the initial corporate setup.

Administrative friction accompanies the cancellation process because state corporate codes require formal board resolutions and canceled certificate documentation.

Founder Departure

Voluntary exits and involuntary removals trigger identical algebraic outcomes regarding unearned stock proportions. Personal hours invested during the early months yield zero financial return if the departure happens inside the initial cliff window. Subsequent departures surrender a declining volume of shares as the vesting curve advances toward completion.

Attention shifts permanently from active building to defending contractual terms during severance negotiations.