This article is designed to help operators efficiently navigate through the steps involved in granting awards to participants, covering award schema selection through advanced settings configuration.
Creating a new award
Selecting an award schema
Three default award schemas are typically available:
- Standalone Award: A standard award with a four-year linear monthly vesting and a one-year cliff.
- One-off Swap Award: An equity award granted in exchange for a one-time cash bonus, without vesting.
- Advance Swap Award: An equity award in exchange for an annual salary increase, featuring a 12-month linear monthly vesting period without a cliff.
Selecting a participant
Operators choose the award recipient using a searchable selection box. Important constraint: a participant can be awarded unless they are currently in a termination process.
Assets
Three interconnected fields define award size: Number of Assets, Total Value, and Percentage of Company Shares (%). Additional asset fields include Price per Asset (PPA) and Initial Value, which represents the baseline value assigned to phantom shares at the time of granting.
Vesting
Three vesting types are available:
- No Vesting (Immediate): Awards are fully owned and available to participants as soon as they are issued.
- Time-Based Vesting: Awards are earned over a set period, such as a four-year monthly vesting with a one-year cliff. Operators input vesting start dates, customizable via the Customize button.
- Performance-Based Vesting: Operators can add multiple milestones to an award, with each evaluated separately on its target date.
Advanced settings
Two customizable options:
- Accelerate Vesting in Case of Exit: Enables full vesting upon company exit.
- Grant Date: Specifies when ownership transfers, typically upon document signing.