November 2018 - Exercise Stock Options - Matching Stock Grant
When stock options are exercised, they become regular stock in the stock plan's underlying stock class. Based on guidance from legal professionals, Captable.io will now automatically create a matching stock grant for all exercises going forward. This change simplifies and reduces errors during exercising.
Action needed from cap table administrators
For the options exercised prior to this release, please create matching stock grants if you did not create them previously. Without them, the fully diluted total shares will be undercounted.
To do this, go to Cap Table tab -> Plans and Equity Awards -> Exercised Options section, then compare all exercised options against the stock grants in Cap Table -> Stock.
For example, if you see a 100-shares exercise for employee Elenore, Elenore's options are in a stock plan under the Common Stock class, and there wasn't a Common Stock grant created for Elenore during the exercise, please create a 100-share Common Stock grant for Elenore.
Going forward, you don't need to manually create matching stock grants for exercises - Captable.io will automatically do it for you.