What are the pros and cons for employers?

One-year vesting gives employers the flexibility to reduce their equity dilution. Your company might still be able to meet the market price for talent, while saving 75 percent of equity compared to a four-year grant.

And one-year equity grants also give companies the flexibility to differentiate talent. The one-year grant lets employers evaluate talent year to year, and offer more shares based on performance without being locked into a four-year grant amount.

One possible downside for employers is that a one-year grant can sometimes cause confusion or unintended consequences during negotiations