What is the initial period before vesting begins called?

The term that describes the initial period before vesting begins is known as the "cliff." This is an important concept in equity compensation, particularly for startups that offer stock options or equity to employees. The cliff period is typically a predetermined amount of time, such as one year, during which the employee does not earn any equity or stock options, even if they are employed during that time.

Once this cliff period ends, the employee then becomes eligible to receive the first portion of their equity grant, and subsequently continues to vest in accordance with the agreed-upon schedule. This structure helps companies ensure that employees remain with the firm for a significant period before gaining ownership of the equity, which in turn protects the company’s investment in its workforce.

The other terms listed do not accurately reflect this concept. "Start Period," "Delay Period," and "Initiation Phase" are not standard terminologies used in the context of vesting schedules and do not capture the specific notion of a defined timeframe before vesting initially occurs.