Termination Process

Introduction

This article outlines the process for terminating a participant from an Employee Stock Ownership Plan (ESOP) within the platform. Termination involves handling all assets in accordance with the specific scenario selected for the participant.

When to use the Termination Process

• Employee Termination: Initiate when a participant leaves the company.
• Change in Entity: Applicable if a participant's type changes (e.g., transitioning from employee to freelancer).

What termination actually does

Termination stops the participant's time-based vesting for all awards and returns unvested assets to the plan's pool. Access is switched to a personal email address to maintain platform access post-departure.

Process steps

Selecting a participant

Choose the participant to be terminated using the selection box with search functionality. Participants involved in ongoing processes cannot be terminated until those processes are completed, deleted, or resolved, as allocated or reserved assets may not process accurately during termination.

Setting the termination date

The termination date serves as the cut-off for asset processing. Assets vested before this date are retained; unvested assets are forfeited under the "Good Leaver" schema. The termination date can be set retroactively or for a future date, with no restrictions.

Setting the termination scenario

Two default termination schemas exist:

• Good Leaver: Participant retains vested assets and forfeits unvested ones.
• Bad Leaver: Participant loses rights to all assets.

Adding a personal email

The switch to personal email login is triggered when the termination process is published — not automatically on the termination date.