This article will explain how to register options on Capdesk.
Firstly, to undertake this action you'll need to be an administrator with the ability to edit options.
If you meet the requirements above, you can register an option by undertaking the following actions:
On your company's profile, go to "Settings and Add-ons" and ensure that "Options Addon" is selected. If it isn't, please click on the box by "Options Addon" and select save to enable options.
Afterwards you'll need to ender the "Options" page under "Equity Awards".
Prior to adding an option, you'll need to add an option plan, to do this select the "Plans" tab. Then click the "Add Plan" button,
For more information on how to create an option plan please follow this link.
Once you've entered the necessary details click "Save". It will then appear as a plan on the "Plans" tab as shown below.
After this, click the "Grants" tab and click the "Add Grant" button, then "Register Offline Issuance".
You'll then either choose a stakeholder from the pre-existing list (those that are already registered on Capdesk) or select "Add new Optionholder Instead".
The details necessary to create a shareholder are shown below.
After you've chosen or created a stakeholder you'll be taken to a page that will allow you to enter the details of the option grant.
You'll need to fill out:
- Option plan
- Grant date - date of when the options were granted, not vesting start date.
- Exercise price - exercise price per share.
- Options - number of options granted.
- Expires - expiration date of the grant.
An example of these being filled out is shown below.
For the vesting schedule, you'll need to put in values for:
- Vesting schedule - Dictates how the options will vest.
Automatic (Distribute Evenly, Round Up): Rounds first tranche then distributes evenly.
Automatic (Distribute Evenly, Round Down): Rounds down first tranche then distributes evenly.
Automatic (Round Up): Rounds up any fractional vesting each tranche and removes any difference in last tranche.
Automatic (Round Down): Rounds down any fractional vesting each tranche and adds any difference at the last tranche.
Immediate: Allows for all options to be vested upon reaching vesting start date.
Custom: Allows vesting at selected dates.
Vesting Conditions: Set conditions which have to be met to allow options to be vested e.g. vests on exit (no data is required to be entered).
- Vesting cliff - No vesting takes part during the cliff, after the cliff, the first vesting tranche will include the entire cliff period.
- Vesting cliff percentage - The percentage of the grant which is to be vested at the end of the cliff period.
- Vesting period start date - The date of when the option grant starts vesting (including the cliff).
- Vesting on - When the tranches should be vested e.g. First of each month.
- Vesting period - Total vesting period in months including cliff.
- Vesting interval - An interval X determines that after any cliff, vesting occurs every X months.
An example of these values being filled out is shown below.
If you have any documents, you wish to attach we'd advise you to do it publishing the option by clicking the "Notes and Documents" drop-down and upload the document there.
Once you've entered the relevant details and if you aren't live click the "Save Draft" button. If you are already live, you can select either "Save Draft" or "Publish and Notify" button.
Once the option has been registered it will appear on the "Grant" tab as shown below.
To view detailed information for any option click the "View" button on the "Options" page.
If you have to update an option grant vesting schedule please follow this link for information on how to undertake this action.