This support article will walk you through how to enable online exercise.
The online exercise feature is limited to:
- The option holder has to exercise their options in GBP.
- The option holder has to be resident in one of the following countries to undertake KYC:
- United Kingdom
- United States
- The company must be based in the United Kingdom.
When you are initially onboarded onto Capdesk your data will be in "drafts", this means that it can only be seen by administrators.
Going live will publish your data allowing stakeholders to see their holdings and enabling a number of features including online exercise.
A support article on what features going live will enable you to use can be found here.
If you are not yet live, please speak to your onboarding account manager to assist you with this. Additionally, you can read here on what to check before going live: https://support.capdesk.com/what-to-check-before-going-live
Once you are live, you can find the steps to enable online exercise by clicking on "Enable Online Exercise" on the "Online Exercises" page.
Once you are on this page, you will see that enabling online exercise is made of three parts:
1) Prepare Yourself
Verify Identity: You will need to verify your identity for security purposes. Please find support article on how to verify your identity here.
2) Prepare Your Company
- Verify Your Company: In addition, you will need to verify the company's identity. Please find support article on how to verify your company's identity here.
- Add a Company Bank Account: You will need to add a company bank account and this is where the exercise cost will be paid into. Click "Add Bank Details" under "Transaction Settings". You can read more here for more information.
- Establish an Exercise Approver: You will need to enable an administrator access to approve of any exercises. To do this, go to the User Access page (under Settings), then find the admin and click on the action button (with the 3 dots) -> Modify.
Scroll down to the "Document and Transaction Approvals" -> Approving Exercises -> Write. You can also make this admin the default to approve exercises.
3) Make Plans Exercisable
You are required to upload exercise document(s) i.e. exercise notice. This can be done on the "Online Documents Template" page and clicking "Add Template".
You'll be brought to a page where you'll be asked to choose the type of option holder who will be exercising their option grant (in the case below it's an individual stakeholder), name of the option plan and name the exercise template.
To add the exercise document (i.e. exercise notice) click "Add Dynamic Document" and select "Exercise Notice".
In your exercise notice document, we require you to add Capdesk placeholders so that the relevant information is automatically populated, if you need help with this please contact email@example.com.
For your convenience, Capdesk provides a sample template available for download. However, please note that this is a very basic sample template, intended to give you an understanding of what a template might look like with the Capdesk placeholders. It is not intended for use. If you do not already have an exercise notice of your own, we recommend you consult your legal adviser.
If you wish, you can also upload static documents (i.e. documents that will be sent to all grantholders when they exercise their options, without any adjustments made to them). To do so, click the drop-down menu under 'Static Documents', and select the type of document you wish to add. Then click 'Upload' to attach the relevant document from your personal files.
Once all documents are added click "Save".
After this you will need to enable online exercise for the option plan you allow for exercises. You can do this by entering the "Plans" page, then clicking on the three-dotted action button by the plan -> Edit.
On this page you'll need to tick "Enable Online Exercise" and click "Save".
Once you've ticked "Enable Online Exercise", you can allow for online exercises for option grants which are part of this option plan and you are ready to start using Capdesk for online exercise.
If you want to allow for exercise for vested options, please follow this support article here.
If you want to allow for exercise for leavers vested options, please follow this support article here.
If you need further assistance, you can reach out to us by submitting a support ticket here.