Create an option grant or stock award

There are two stages to creating grants for an option plan in Diligent Equity. First you create or add a shareholder and then create the option grant or stock award.

For details on creating a new profile in Holders go to Create a new shareholder

Tip

You can create a new shareholder as part of the process when adding a new optionee.

1. Go to the Securities section in the navigation sidebar and select Options.

2. Select the option plan you want to use.

3. Select Add new grant.

   This will open the Add new optionee wizard.

4. Enter the shareholder's information.

   1. Optionee: Enter their name.

      • If a record already exists for that person, their name will appear in a drop-down menu for selection as you type. If they don't already exist you can add them by selecting +Add new.

      • More options will appear when the Optionee field is filled.

   2. Role: Select the input field to open menu.

      Depending on the selection here, you may need to add a Start date and further information.

   3. Position: Enter the optionee's job title.

   4. Department: If a new department is entered, an prompt appears asking if you want to add it as an option. Previously created departments appear in a menu list for selection as you type.

      These fields are optional and will only appear if you selected them under your Settings > Preferences. For further information go to Set up plan parameters and default provisions.

   Note

   You can complete the participant's personal profile later in the Holders screen. For further details go to Shareholder management.

5. Select Next and enter the Grant information.

   • Options: Enter the number of options granted.

     Further input fields will appear when this field has been filled.

   • Stock award: This applies only to stock awards and should remain unchecked in option grants.

     The Stock awards checkbox only appears if you select it in your Preferences.

   • Start vesting on: Enter the date that vesting begins.

   • Vesting schedule: Select to open the list of vesting schedules created, and select the schedule for this grant.

     You can select Show details to view the specifics of the selected schedule.

   • Tax plan: Leave the ISO box checked if the grant is an Incentive Stock Option. Select NSO for a Non-statutory Stock Option.

   • Allow early exercise: Check this box if the grant is entitled to an early exercise provision. These are options that can be exercised before they are vested.

   • Compliance checks passed: If the check box is selected and green it means you have passed the 3 compliance tests .

     For more information go to Option plan compliance check.

6. Select Next to go to Approvals and dates and complete the relevant fields.

   Tip

   Check the Approved by the board check box or use Workflow to process board approval of a grant.

7. Select Next to go to Grant documents.

   Select Document type and Upload to upload files from your device. Diligent Equity supports documents in the .docx or .pdf format.

8. Select Next to add any comments or notes and select Finish.

View, edit or delete an option grant

After you have created an Option Grant you can view or edit it from the option plan or by searching for the shareholder / optionee.

For further details go to

Make changes to an Option Grant

Delete an Option Grant