What is the vesting percentage after 4 years according to the vesting cycle?

The vesting percentage after 4 years is typically based on the structure of a vesting schedule, which often spans a period of several years, commonly 4 years for equity compensation or retirement plans. A common vesting schedule is the "4-year vesting with a 1-year cliff," where employees receive no vesting in the first year and then gradually earn a percentage of their benefits over the subsequent years.

In this scenario, after the first year, the vesting might reach 25% (or a quarter of the total benefit). For the years that follow, the vesting percentage typically increases by a set amount each year. After 2 years, an employee would commonly have 50% vested, and after 3 years, they might reach 75%. By the end of the 4-year period, they would then be fully vested, which often means 100%. However, if five vesting points were accrued annually following the initial cliff, achieving a 60% vesting percentage after 4 years aligns with some plans.

Therefore, with the understanding of common vesting practices, a vesting percentage of 60% after 4 years suggests a plan where employees earn a portion of their benefits quite consistently after the initial period