Set up plan parameters and default provisions

This section describes how to set up the general plan terms for a new Stock Option Plan in Diligent Equity. This can be done after creating the option plan using the New Option Plan wizard. For more information go to Create a stock option plan and plan share reserve.

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

  2. Select your option plan and select Settings.

    Your Option Plan Settings window opens.

You can update or change your plan settings at any time in this screen.

Option Plan settings tabs

Tab name Settings Description
Summary

Here you can update the Plan Name, Date of Plan, and Type. The values reflected at the bottom of the screen will update automatically as grants are added or updated within your plan.

 
Preferences Return cancelled options to pool This box is checked as a default. Leave this box checked if cancelled and repurchased shares are returned to the Plan pool for future grant. When the box is not checked, cancelled and repurchased shares are not recycled.
Expires after (#) Years

Enter the number of years until the option grants expire, typically 10 years. This is a global setting for the Plan that can be revised at the individual grant level.
Exercise within (#)days/months of termination Enter the number of days or months after termination that the participant has to exercise vested shares. This is a global setting for the Plan.
Grant rules Indicate the country or countries whose grant rules can be applied to option grants. When you enter an individual option grant, you will choose at that time the country whose grant rules apply to that particular grant.
Show advanced fields

Here you select which optional fields you want to appear in the individual option grant pane

  • Department: Check this box if you want to track the participant's Department. You can then view and sort certain Plan data by Department.

  • Region: Check this box if you want to track the participant's Region. You can then view and sort certain Plan data by Region.

  • Grant ID: Check this box if you want to add a unique identifier to individual option grants.

  • Grant reason: Check this box if you want to track the reason for individual option grants, for example "New Hire" or "Annual Review."
General

  • Allow stock award: You must check this box to be able to grant stock awards under the Plan.

  • Enable exceptions: You must check this box to allow revision of this post-termination exercise period at the individual grant level.

  • Vesting rounding method: determine how rounding will effect your option vesting.
Vesting schedule  

Set up your Vesting Schedule Templates to streamline adding new grants to your plan. In this tab you can add an unlimited number of Vesting Schedule Templates, however, each one must have a unique name and unique vesting descriptions.

Diligent Equity automatically provides a default 4-year vesting schedule designated as "Standard (D)". For instructions on how to create template vesting schedules, go to Create and manage vesting schedule templates.

Note

If you have already created any new template vesting schedules for restricted stock under the Shares link, these templates will automatically appear in the list of vesting schedules under the Options & Warrants link as well.
Documents  

You can upload any documents relevant to your Option Plan within this tab. Select the Document Type and then select Upload to browse the files on your computer.
Import and export

The Import/Export tab enables you to Download a blank Option Plan Import Template (should only be used to add new grants to your plan), Import an Option Plan Template (should only be used to import new grants or after updating an exported file), and an Export CSV file. This export will download your entire option plan so you can edit in bulk.

Select Close to save any changes and to exit the Option Plan Settings.

Caution

Remember that this will merge the new grants with the existing grants. For more instructions on how to import option records to Diligent Equity see the separate Import multiple optionee records.