Defining equity types

Equity types describe the type of equity grant your organization awards (for example, stock options or restricted stock units).

  1. Select Compensation > Set Up > Compensation Planning > Equity Types.
  2. Click Create.
  3. On the Equity Type form, specify this information:
    Effective Date

    Required. Specify the date on which this code becomes effective.

    Equity Type

    Required. Specify the equity type name. For example, RSU.

    Note: 

    This field is used for interface to third-party administrators.

    Description

    Specify the equity type description. If you leave this field blank, the equity type name will default when you save the form.

    Note: 

    This field is used to identify the award type to managers and employees. For example, RSU (Restricted Stock Units).

    Unit Number Of Decimals

    The number of decimals to display in equity unit fields. The maximum is 6.

    If you do not specify a number of decimals, the units will display as a whole number. For example, 25.75 will display as 26.

    Note: 

    If equity units are calculated by the Calculate Budget action, this value should not be less than the Round To value used on the planning rule for the equity award.

    For example, if the Round To value is 0.01 and the Units Number Of Decimals is 1, a number of units calculated as 25.05 will display as 25.0.

    Active

    Defaults to Active. Clear this check box to inactivate the equity type.

  4. Click Save.