Implementing a Vesting Schedule

Step 1: First log into your account, select the company profile, and go to the dashboard. From here, you now need to start the process of issuing shares to the shareholder or employee. So, click on “Securities” and then on “Equities” from the left-side menu to reach the following page.

From here you will see all the equity classes that you have already created in the company. In case you did not create an equity class, click on “Create new class”. When you do this, you will be able to create a new class and issue shares from that class. Here is the support article that can help you with it.

In this case, we already have the equity class created – ESOP. We are going to issue options to an employee from ESOPs. To do this, click on “ESOP” from this page.

Step 2: Once you do this, all the issuances from this class and its details would show up as shown below.

From here, click on “issue grants” from the top right-hand side of the page.

Step 3: Once done, you will reach the following page where you need to look for the shareholder’s profile.

Here, there are two options – one to search for the shareholder’s profile (that is when you have already added the shareholder’s profile – learn how to do it here) and the second is to directly add the shareholder profile as you issue shares to them.

In this case, we already have the shareholder profile and are using that. Type in the name of the shareholder in the search field and the name would appear on the right side with a “Select” button. Click on this.

Step 4: When you do this, a new panel will appear where you can now add the details of the issuance.

Add in the details and when you reach the last option – where you need to select if you need a vesting schedule or not, click on “Yes”.

Step 5: When you do this, one more option will appear where you need to select the vesting schedule you have already created to add it to this issuance process.

In this case, we created the Hybrid plan for this shareholder and would use it for this issuance process. Click on the plan.

Step 6: With this, two more options would show up.

One is the vesting restriction and the second is the vesting start date. Choose the vesting restriction that you want from the list available and then add the start date as shown below.

When done, click on “Submit”.

Step 7: You will then be redirected to the equity class page where you can see that the shares were issued and the vesting schedule has been implemented.

To see how the vesting schedule has been implemented, click on the certificate name, which is “E-001” here.

Step 8: This will take you to the page where you can see the details of the issuance. This would also include the vesting schedule that was added. You can easily see how many shares are vested as per the plan.

From the above, you can see that the shares have been issued with the vesting schedule implemented as well.  You can follow the same steps for any other employees/shareholders for whom you want to add a vesting schedule while issuing shares to them.

If you have any doubts or want to know more, check out the other support articles here or contact us!