The final step to setting up an Option Scheme.
This article goes through distributing both EMI, and Unapproved options through Vestd.
In the case of an EMI scheme, you will first need to get a Valuation agreed with HMRC.
For Unapproved Options, there is no need for a Valuation to be agreed with HMRC before agreements are signed, although people do sometimes carry out an unofficial Valuation to make sure their employees are getting the most out of these options.
First, log onto the platform and go to your Dashboard.
Here, under EMI & Options click View & Distribute:
If you have not yet Designed an Option Scheme, you will need to do so before proceeding.
If you have, you will be able to View your schemes and issue options by clicking the button below:
Which will take you to this page:
Where you will see a list of your schemes, and a brief description of each.
Click on the scheme you would like to issue through, and you will be asked to fill in some recipient details:
You will need to enter the following:
- Which option pool to issue from. If you have not yet done so, you will need to Authorise an option pool;
- The start date of the recipient's vesting schedule;
- The recipient's name, email, and National Insurance number;
- Finally, the Number of shares you would like to issue them options over
Once this is done, check the details are correct and click Save and add another. Don't worry, nothing gets sent out just yet, you will be able to review this later.
Once you've clicked Save and add another, the distribution will appear at the bottom of the page:
The distribution you just created will start off in Draft by default.
Clicking Edit on the right hand side will take you to the Edit Option page, where you will be able to change the details you just entered, and if you scroll down:
You can include some criteria that the recipient will see when they receive their invite to join the platform, as well as upload a contract if you have one. These options are rarely used, so don't worry if you have nothing to add here. Once you're happy, click Save at the bottom of the page.
On the previous (Option Scheme) page, clicking the name of the recipient will take you to the following review page:
Go through the details here, if you need to change anything just click the Edit button in the top right, which will take you to the previous page.
This page will also show you the vesting schedule:
The platform will automatically split the shares remaining after the Cliff Shares into equal tranches until the Final Vesting Date.
You can, however, customise it. Just click Edit on the tranche you want to change:
And it will take you to this page.
Here, you will be able to change the number of shares, and the date this tranche will vest.
Back on the top right of the page, you will need to upload a copy of your Company's articles of association if you have not done so already, and then invite the recipient to accept their Options. The platform will produce all relevant paperwork.
Once you are happy, just click Save. On the Agreement Summary page, click Send Invite, and you're all done!
Provided you haven't yet sent the invite, if its all gone wrong and you want to start again, just click Delete at the bottom of the page and try again: