How do I create a custom vesting schedule?

You can add a custom based vesting schedule for equity types such as options, warrants, share grans, phantom shares and RSUs.

The custom vesting schedule allows you to customise the schedule as you like by adding any number of time-based tranches. Custom schedules can be used to represent schedules that do not fit with Capdesk’s standard schedule types. For instance, a schedule that vests faster and faster will need to be represented as a custom schedule.

The following will demonstrate how to add these vesting schedules for options, please note that the same process holds for other types of equity awards that have vesting schedules (warrants, share grants etc.)

Firstly, click on the relevant equity type (under 'Equity Awards') -> 'Grants' -> 'Issue Grant' (Green Button) -> 'Register Offline Issuance'. 

[The difference between 'Registering Offline Issuance' and 'Issue Online' is that the 'Issue Online' is executing a new grant issuance including documentation and signatures on Capdesk.]

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Choose the stakeholder that you would like to grant equity to. If the stakeholder is not currently recorded on Capdesk, click 'Or Add a New Optionholder Instead' (if options are being granted). Provide the required details of the new stakeholder, such as their name, address, email and registration number (if the stakeholder is a company).

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Fill in the relevant details of the equity award until you reach the vesting schedule. The main field to note in this instance is 'Options', as the total amount of equity granted has to match the total amount of equiotuy that vest in the custom vesting schedule. Note in this example, we are granting 500 options.

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Custom Vesting Schedule

Click on the 'Custom' option and state the date that the options start to vest.

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Now, we want to specify each tranche of the vesting schedule. To do this, click 'Add' and state the scheduled quantity that is to vest on a certain date.

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Keep adding each tranche until the vesting schedule is complete.

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Once this is complete, click 'Save Draft'. You will notice that if the total scheduled to vest does not match with the total options granted, you will get an error message similar to the one below (in this example, the last tranche was not considered and thus the error message).

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If the total scheduled matches the total granted, however, the grant will be saved. Click on the relevant equity award -> 'Grants' -> Search for the grant -> 'View'. This will display the specific details about the grant; in particular, the custom vesting schedule can be found under 'Vesting'.

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If you would like to make any adjustments to the custom vesting schedule, click the action button that corresponds to the grant -> 'Modify Vesting'. This is where you can adapt the same method to change the schedule (this can only be done in 'drafts', not when the grant has been 'published').

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Once everything is on order with the grant, click 'Publish and Notify' to inform the optioholder about their grant (this can occur once you have gone live).

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If you need further assistance, you can reach out to us by submitting a support ticket.