Performance, pay & rewards · Core
Cliff vesting
Also called: vesting cliff
ELI5
Vesting that begins with a substantial first tranche after a set period.
Used in conversation
“The announcement should not get ahead of the agreed process for cliff vesting.”
Pitch context
You will see “Cliff vesting” in organisation plans, workforce reviews, change programmes and people reports when the discussion reaches performance, pay & rewards.
Why it matters: In performance, pay & rewards, a loose definition can change rights, obligations, approval, disclosure or enforceability.
Caution
Meaning, enforceability and required process vary by jurisdiction and agreement; this definition is not legal advice.
Connected terms
- CliffThe search label “vesting cliff” can route to both entries.
Sources & evidence · 2
Direct term-level sources and supporting source families.
- U.S. Bureau of Labor Statistics — BLS GlossaryDirect source · primary · checked 2026-08-16
- OECD — G20/OECD Principles of Corporate Governance 2023Direct source · institutional · checked 2026-08-16