Vesting: strategy for the long-term retention of talent

Vesting is the process by which employees, founders or investors acquire their shares or share options over a fixed period of time, thereby encouraging their long-term commitment to the company. This staggered allocation of ownership rights serves as an incentive mechanism to ensure that key individuals remain loyal to the company through critical growth phases and contribute to its success. By implementing vesting agreements, companies can align the interests of their team members with the long-term goals of the organisation, creating a stable foundation for sustainable growth.