How to allow leavers to exercise vested options

This support article provides an overview of how to allow for exercises of vested options for leavers using our Online Exercise feature

You may have an optionholder who leaves the company but they have vested options and you allow for them to exercise them. You can execute the exercise on Capdesk.

Before you can allow for exercise of vested options, you will need to enable the online exercise feature. Please find a support article here on how to do this.

To start an online exercise process, go to the "Grants" page and click three-dotted action next to the option grant that is to be exercised and select "Terminate Online".

Screenshot 2020-07-21 at 16.07.43

 

You will then need to set the parameters of the exercise:

  • Exercise Period Start: the date of when the optionholder can exercise
  • Exercise Period End: the last date of when the optionholder can exercise

With the two above dates, this is the exercise period (you can see this information in the highlighted right side (2) Exercise Period).

  • Cancel all unvested options or unvested and more: you can select to cancel the unvested amount of options or you can cancel more than the unvested amount

Screenshot 2020-07-27 at 14.05.46

 

Once you have entered these values, click "Start Termination".  All unvested options will be cancelled, in the case of the screenshot above 49 options will be cancelled on the exercise period start date.

Please note once you start the termination, this cannot be undone. 

The option holder is then invited to exercise their options. 

You will find a support article on actions the option grant holders have to undertake here.

After optionholder has completed the relevant actions, the admin user who has "Approving Exercise" access will have to click "Approve" on the "Online Exercise" tab.

Screenshot 2020-07-23 at 15.08.50

The approver will get one final chance of the transaction before approving it.

Screenshot 2020-07-23 at 15.11.24

The transaction will then move into draft as the transfer is processed, and once it's processed the exercise will be published.

 

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