Introduction
Vesting schedules can range from a standard monthly schedule with a cliff to more complex custom or performance-based arrangements. Choosing the right setup is important because it determines when a stakeholder earns their equity and helps the schedule in Ledgy match the terms in their grant agreement.
As an account admin, you can create a vesting schedule for an individual grant or save a vesting preset to reuse across future grants. This article explains which vesting type to choose, how to set up and preview a schedule, and how to control the first vest after a cliff for month-end schedules.
Choose a vesting type
When you add vesting to a grant or preset, choose the option that best matches the terms agreed with your stakeholder:
No vesting: The full grant vests on the grant date
Standard vesting – Simple: Use one duration, vesting interval, and optional cliff for a regular schedule
Standard vesting – Custom: Divide the schedule into periods with different durations, vesting intervals, and allocation weights
Tranche builder: Build a flexible schedule with separate time-based or performance-based tranches
Saved preset: Apply a vesting schedule that your company has already created
Tip: Use Simple vesting for standard schedules such as monthly vesting over four years with a one-year cliff. Use Custom vesting or Tranche builder when the schedule changes over time or combines different conditions.
Note: Some vesting options depend on your Ledgy plan.
Set up vesting on a grant
Go to Equity Plans > Grants.
Create a grant or open the draft grant you want to update.
Open the Vesting section.
Select Standard vesting, Tranche builder, or Saved preset.
Enter the vesting terms. For Simple vesting, add the duration, vesting interval, and cliff in months.
Choose when vesting starts and the day on which later vesting dates should fall.
Review the chart and schedule preview to confirm the dates and amounts.
Click Save.
Important: Check the preview against the signed grant terms before you save or publish the grant.
Image 1: Vesting settings and preview
Create and manage vesting presets
Vesting presets help you apply the same schedule consistently and reduce manual entry when creating grants.
Create a vesting preset
Go to Equity Plans > Vesting Presets.
Click Create preset.
Enter a clear Preset Name, such as “Four years, one-year cliff”.
Select the vesting type and enter the schedule terms.
Use the example grant details and preview to check the vesting dates and amounts.
Click Save preset.
Image 2: Create a vesting preset
Edit a vesting preset
Go to Equity Plans > Vesting Presets.
Open the row actions for the preset and select Edit.
Update the schedule and review the preview.
Click Update preset.
Important: Updating a preset does not change grants that already use it. The updated terms apply when you select the preset for a future grant.
Apply a saved preset to a grant
Open the Vesting section of a new grant.
Select Saved preset.
Choose the preset you want to use.
Review the preview before saving the grant.
Choose the first vest after a cliff
For Simple schedules that vest on the last day of the month, you can choose whether the first vesting date after the cliff falls in the cliff month or the following month. This helps the schedule match the terms agreed with your stakeholder.
Set the first vest after cliff
Select Standard vesting, then choose Simple.
Enter the duration, vesting interval, and cliff.
Set Vesting ends on to Last of month.
Under First vest after cliff, choose one of the following:
End of cliff month: The first vesting date is the last day of the month in which the cliff ends
End of month after cliff: The first vesting date is the last day of the following month. This is the default option
Check the preview to confirm the vesting dates before saving.
Note: This setting does not change the cliff date. It only changes the first vesting date after the cliff.
Example
A schedule starts on 1 January, has a 12-month cliff, and vests monthly on the last day of the month.
End of cliff month: The first month-end vesting date is 31 January of the following year
End of month after cliff: The first month-end vesting date is 28 or 29 February
Image 3: First vest after cliff
Frequently asked questions
Does editing a vesting preset update existing grants?
Does editing a vesting preset update existing grants?
No. Grants keep the schedule that was applied when they were created. The edited preset is available for future grants.
When does First vest after cliff appear?
When does First vest after cliff appear?
The field appears when you use Standard vesting – Simple and set Vesting ends on to Last of month.
Does First vest after cliff change the cliff date?
Does First vest after cliff change the cliff date?
No. It only controls whether the first month-end vesting date falls in the cliff month or the following month.
What is the default month-end option?
What is the default month-end option?
End of month after cliff is the default option.