Hybrid vesting (Swedish: hybridvesting) is a vesting model combining time-based and performance conditions. Part of the shares or options vests over time, as with linear vesting, while another part requires goals to be met, as with milestone-based vesting. It is common in stock option programs for key people.
The conditions decide when the holder receives shares or compensation. For a correct cap table, the company tracks both time and milestones and enters shares in the share ledger when they pass to the holder.

Vesting is the period or conditions that must be met before someone gains full rights to shares or options.
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Linear vesting is a vesting model where equal portions vest at regular intervals over a set period.
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Milestone-based vesting means rights are earned when the company or the individual reaches set goals.
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A stock option program gives, for example, employees the right to buy shares in the future.
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