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Compensation at SAP

Vesting Schedule

40%

40%

20%

YR 1

YR 2

YR 3

100%

0%

YR 1

YR 2

Stock Type

RSU

At SAP, RSUs are subject to a 3-year vesting schedule: 20% vests at the end of the 1st year (cliff), then 40% at the end of each of the 2nd and 3rd years (cliff). Alternatively, SAP also has the following 2-year vesting schedule: 0% vests in the 1st year, 100% in the 2nd year.

SAP supports the following: Graduated vesting is a form of vesting that implies that employees are allowed to exercise their awards gradually on a year-to-year basis, for example, 20% in year 1, 40% in year 2, and the final 40% in year 3. Cliff vesting implies that for example all awards vest at once after two years.

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