When an employee is awarded performance-based vesting rights, the vesting schedule for that employee is manually updated to reflect this change. As a next step, the company has to recognize or approve the performance parameters as achieved, partially achieved or not achieved at grant level. By doing this, the company can verify the performance against the vesting rights and approve the appropriate % of vesting. The remaining options get cancelled.

 

For example, the company can recognize say only 60% of the options should be vested. The balance 40% is not achieved and will be unvested and cancelled.

 

To recognize performance conditions:

  1. Click Equity Awards in the left menu, select Grants.
  2. Select the stakeholder or search for the stakeholder.
  3. Click the menu and select Recognize.

 

 

 

4. In the displayed Performance Condition Recognition screen, enter the following details:

  1. Recognition Date for the performance vesting. 
  2. Click to indicate that the performance condition is Achieved.
  3. Payout % depending on the performance criteria the employee meets.



For Recognition Date, Achieved & Payout% you can use the Copy Down, drop-down - Apply to - This Page and All Pages will be displayed. From the selected Tranche for which the Copy Down is applied, the value will be copied down to all the below tranches on the same page, or all the pages based on the option chosen (this page or all pages) from the drop down.  

  1. The number of Options Vesting. The number of Options Cancelled is automatically calculated and updated. 

                                                                 

 

Note: The Grey Exclamation indicates that the Performance Condition is not evaluated yet. The Red Exclamation indicates that the Performance Condition is past its Vesting Date and not yet been Recognized.

 

5. To select the performance condition, click  against it.

6. Click Recognize.

7. In the Confirm Recognition of performance condition dialog box, verify all details and click Yes, Recognize.

 

 

The Recognition Status displays the final tranche details that have been successfully recognized. 

 

Note: If the Performance Condition is successfully Evaluated, the grant status changes to Evaluated.