Step 1: The first thing that you need to do is log into your Eqvista account and choose the company profile you want to issue the shares using the hybrid vesting. To do this, click on “Cap table” from the left-hand side of the panel and a drop-down menu will appear.
Here, click on the option that says “Vesting and plans” to be directed to the following page.
On this page, click on the “New Vesting Plan” button to begin the process of creating a hybrid vesting plan.
Step 2: As soon as you click on this button, you will be directed to the next page as shared below.
From here, you will have to select the vesting plan type. To do this, click on the field available to add the option and a drop-down list will appear. From this list, select the option “Advanced: Hybrid”.
Note: The hybrid vesting plan is a combination of the time-based plan and the milestone plan. In this plan, the person would be able to earn the options or shares over time, that is by staying with the company for a specific period of time. But they would also have to reach certain milestones before all the shares are vested.
Step 3: The moment you select this option, a drop-down window will appear where you will have to fill in the details of the plan, as below.
The first thing that you will have to add is the name of the plan, which in this case is “Hybrid Plan 1”. Once done, you will then have to create the plan by filling in the details for each period. In this case, we added 4 year periods where the first 20% of shares will be vested after the first year and then 20% shares would be vested monthly for each year after that.
But since this is a hybrid plan, we also added two milestones that have to be achieved by the shareholder. Here, they will need to reach the sales goal to get 10% of the shares and reach the customer satisfaction goal by obtaining 5,000 positive customer reviews overtime to get the other 10% of shares.
You can easily add more periods in the plan or milestones by clicking on the “+” sign or remove the period or milestone by clicking on the “-” sign. And just like this, you can easily add the number of periods and milestones for which a certain number of shares will be vested after completion.
Just to explain better, the percentage here is the percentage of shares that will be vested once the milestone/period has been fulfilled. Once you have reached 100% for the plan, you will also notice that the “Submit” button can now be clicked. Click on “Submit” once your plan is in place.
Step 4: After this, you will be redirected to the page where you can see all the vesting plans you have along with the plan that you just created as shown below.
From here you can now use this plan to issue shares to the employee or shareholder as per your plan. You can also view the plan and its details by clicking on the option that says “View plan” on the right side of the plan name and date of when it was created.
Note: Learn how to add a vesting plan while issuing shares to a shareholder here!
And just like this, you can easily create a hybrid vesting plan. To know more about how to use Eqvista, check out the various support articles here!