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🌍 US & Europe · Vesting & exerciseReverse vesting
Also called: reverse vesting
In one line
An arrangement where you already own shares but the company can repurchase the unvested portion if you leave early.
In plain English
Common for founders and early-exercised options: you hold the shares now, but they're subject to repurchase until they 'vest' by your continued service. It's vesting applied to shares you already own.
If you were explaining it to a 5-year-old
You're given all the toys up front, but the club can take back the ones you haven't earned yet if you leave early.
Why it matters when you sell
Reverse vesting means some shares you hold aren't fully yours yet, which affects what you can actually sell.
Related terms
Put it to use
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Sources
A general market-practice term. See how we define and source the glossary in our methodology. General information, not advice.
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