Defining vesting schedules

Vesting schedules describe when an equity grant becomes vested. They display on a resource's compensation summary.

Note: Vesting schedules are purely descriptive. They are not used in any calculations. Typically, vesting calculations are performed by a third-party equity grant administrator contracted by the organization.

Use this procedure to define a vesting schedule.

  1. Select Compensation > Set Up > Compensation Planning > Vesting Schedules.
  2. Click Create.
  3. On the Vesting Schedule form, specify this information:
    Effective Date
    Specify the date on which the vesting schedule becomes effective.
    Vesting Schedule
    Specify the vesting schedule name.
    Note: This code is placed in the interface file for the third-party administrator.
    Description
    Specify the vesting schedule description. If you leave this field blank, then the default name of the vesting schedule is used when you save the form.
    Active
    The default is Active. Clear this check box to inactivate the vesting schedule.
    Comments
    Specify a full description of the vesting schedule. This description is displayed on the resource's compensation summary.
    Note: This is an RTF field. Some formatting is enabled. You can also paste text from another document in this space.

    For example:

    25% on the first anniversary of the grant.

    50% on the second anniversary.

    100% on the third anniversary.

  4. Click Save.