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How to create a vesting conditions?

The management of vesting conditions is evolving. You can now associate one or several conditions with a grant (time-based, performance-based and/or event-based conditions). Multi‑trigger vestings are therefore also possible.

① First, go to the Equity awards tab, then select Vesting conditions. Finally, click on + Add a condition.

② Choose your vesting condition type

 

 You can create three types of vesting:

  1. Time-based vesting: rights vest progressively according to a defined schedule.

  2. Performance-based vesting: vesting is linked to achieving measurable performance objectives.

  3. Event-based vesting: vesting is triggered by specific events such as an acquisition or an IPO.

Configuration of the different vesting conditions:

① Time-based vesting:

For this type of condition, you must enter the schedule specified in your documentation. You can also refer to the following article: 🧠 How to configure a vesting schedule? 
 

② Performance-based vesting

First, enter the name of the objective. You can also add a description. Finally, specify the type of performance condition and the minimum completion rate required for the objective.

For example, for a revenue performance objective in K€, if the performance tiers are defined as follows: 

  • Revenue greater than or equal to 100 K€ = 20% 

  • Revenue greater than or equal to 200 K€ = 60% 

  • Revenue greater than or equal to 400 K€ = 100%

    You should therefore set the minimum completion rate at 20%.

    🧠 When validating the objective, you will then indicate the percentage to be unlocked ➡️ How to validate an objective

💡 About the performance type:

Market‑based performance conditions are linked to market indicators, in particular the value of the security. They include, for example, reaching a target share price or achieving performance relative to a stock market index. 

Non‑market performance conditions are based on internal company factors such as financial (revenue, EBITDA), operational or strategic objectives that are not directly linked to the value of the security. The distinction between these two types of conditions is important for the accounting treatment of equity instruments and for structuring incentive plans.

③ Event-based vesting

Simply name the event and add a description if desired.
 
 

Once your securities and vestings have been created, you can move on to the grant operation.

Next step: 🧠 How to link a vesting to a security?