When creating a security, you'll have to specify if it involves a vesting period.
The vesting period is a set of rules that governs when and how a holder acquires options and exercises them.
Vesting details are attached to a security: every granting or subscription to this security will follow the same vesting rules, whoever the holder is.
1️⃣ When creating the security, at step 2 "Vesting", after the question "Is the security subject to a vesting schedule?" place the toggle on Yes.
2️⃣Then choose the type of vesting you want to use:
- If the acquisition depends on the time spent by the holder in the company, choose Standard or Custom,
- If the acquisition depends on personal or group performances, choose Milestones,
- For free shares, choose Free shares.
3️⃣ Setup acquisition calculation rules. The fields depend on the type of vesting you've chosen:
💡 How to proceed if you need to implement different vesting parameters for a same security ?
You'll have to create different securities, with their own vesting rules :
⚠️ One vesting schedule = One security
Standard vesting
The default vesting is Standard. Here is how to setup your standard vesting:
1️⃣ Choose the vesting periodicity : the holder can vest a portion of options every month, every 6 months, every year.
💡Do you have irregular acquisition intervals ?
👉 Choose the Custom vesting !
If the acquisition occurs on an irregular basis, pick the Custom vesting type.
2️⃣ Indicate when the acquisition begins : either on the day following the vesting start date or on the same day as the vesting start date.
3️⃣ Choose the total duration of the acquisition : in months or years.
4️⃣ If your plan states for a lock-in period (or cliff), indicate :
- the duration of this period of unavailability (in months or years)
- the percentage acquired at the end of the period of unavailability
5️⃣ Indicate the possibility of exercise once the securities are acquired.
6️⃣ If your plan states for a conservation period, after the acquisition period, indicate its duration in months or years.
7️⃣ For exercisable options, choose when they can be exercised :
- After every vesting term
- At the end of the whole vesting
8️⃣ To finish with, choose a rounding rule in case calculation results in a fractional number:
- Lower integer
- Upper integer
- Nearest integer
- Lower integer by term
- Upper integer by term
- Nearest integer by term
To learn more about rounding calculations, check our article Rounding rules.
Milestones vesting
If the acquisition depends on personal or group performances, choose this type of vesting.
Here is how to setup your Milestones vesting:
1️⃣ Add a line for each acquisition level (e.g. reaching €10,000 in turnover). You can add as many lines as there are steps in your plan.
Each line represents an event to which you will have to give a name, each event allows you to obtain a new quantity of security.
Use the Add button and indicate the number of lines you wish to add. If you wish to insert, duplicate or delete a line : click on the 3 dots at the end of the line and choose the desired option.
2️⃣ For each acquisition term, enter the percentage of options acquired.
The vesting visualisation graph on the right of your screen can help you.
3️⃣ If your plan states for a conservation period, after the acquisition period, enter its duration (in months or years).
💡 For Milestones vestings, milestones achievements must be entered manually, for each holder.
Custom vesting
This type of vesting offers more flexibility.
Here is how to setup your custom vesting:
1️⃣ Indicate when the acquisition begins : either on the day following the vesting start date or on the same day as the vesting start date.
2️⃣ For exercisable options, choose when they can be exercised:
- After every vesting term
- At the end of the whole vesting
3️⃣ Enter the duration and percentage of your vesting :
To do this, you must indicate, for each vesting period, the corresponding vesting percentage.
You can add as many rows as there are vesting periods in your plan.
Use the Add button and indicate the number of lines you wish to add, you can add as many rows as you want in your plan.
If you wish to insert, duplicate or delete a line : click on the 3 dots at the end of the line and choose the desired option.
The diagram on the right hand side of your screen gives you an overview of your acquisition schedule.
4️⃣ If your plan states for a conservation period, after the acquisition period, enter its duration (in months or years).
5️⃣ To finish with, choose a rounding rule in case calculation results in a fractional number:
- Lower integer
- Upper integer
- Nearest integer
- Lower integer by term
- Upper integer by term
- Nearest integer by term
To learn more about rounding calculations, check our article Rounding rules.
Free shares vesting
Here is how to setup your Free shares vesting:
1️⃣ Indicate when the acquisition begins: either on the very day of the grant or the day after.
2️⃣ If your plan states for a lock-in period, enter its duration (in months or years).
3️⃣ If your plan states for a conservation period, after the acquisition period, enter its duration (in months or years).
