Upstock Help Center
Your go-to resource for quick answers, helpful tips, and expert guidance.
Let us help solve your queries and make your experience exceptional!
Can’t find what you’re looking for?
Email us
Help CenterFixed Equity
How does fixed equity work?
How does fixed equity work?

Fixed equity follows the traditional vesting schedule of stock options where a fixed amount of equity vests over a period of time. The vesting schedule usually includes a “cliff” period and a monthly vesting period. When the cliff period is reached or achieved, the awardee is deemed qualified for the equity award and will start receiving equity according to the plan.

The worker also typically receives the first tranche of equity (which is usually a percentage of the entire award) when the cliff is reached or achieved. It is then followed by a monthly vesting period where the worker is awarded a fixed amount of equity over time until the full equity award has vested.

A common example is a four-year fixed equity plan with a one-year cliff. Let’s say the plan covers 10,000 shares and the shares that will vest upon reaching the cliff is 10%. This means that 1000 shares will vest one year after the worker is awarded the equity plan. After that, the remaining 9000 shares will vest monthly, usually at a uniform rate (in this example, 250 shares per month) over the remaining three years of the plan (i.e., from the 12th month to the 48th month).

It works the same way with Upstock’s RSUs except for its double-trigger vesting mechanism

Need Direct Support?
Can't find what you're looking for? No worries! Our support team is just a click away. We're dedicated to providing exceptional assistance and are always ready to help you with personalized solutions.
Email us
World-class equity plans for global teams
Upstock empowers companies to offer top-shelf and high-quality equity plans to workers and team members in 75+ countries around the world.
Vectors wrapper
Vectors wrapper
Vectors wrapper
Vectors wrapper
and many more...
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.

Do you have any questions or concerns?
Check out our FAQs or send us an email