April 2019 - Stock Option Management
- View and sort Stock Options, Exercises and Restricted Stock Awards across all your stock plans
- Quickly understand what's granted and what's still available in your stock plans with new visualizations and summary statistics.
- Stay compliant with IRS Section 83(b) election tracking.
- To improve long-term record keeping, we now link the option grant and resulting stock grant together during an exercise, and show you the unexercised balance for every option grant.
More details on how we improved stock option exercises:
Before: each time you exercised a stock option, both an "exercised stock option" and a matching stock grant with the exercised quantity were created for you. If it was a full exercise, the original stock option grant was hidden. If it was a partial exercise, the original stock option granted quantity of shares was reduced.
Going forward: now when you exercise a stock option, a new transaction type we call an “Exercise” is created for you, plus a matching stock grant with the exercised quantity. The exercise transaction links to both the stock option exercised and the matching stock grant. The original stock option will always be visible for record keeping and will reflect the granted quantity minus the exercised quantity.
The summary calculations, such as fully diluted totals, aren't changed for this release.
How we linked your exercise records
In order to improve the long-term record keeping, we created exercise transactions, and linked them with the original stock option grant and the matching stock grant created by the exercise based your cap table history, including which shareholder was affected, and quantity and timing of when instruments are created and modified.
- If we found the original stock option grant and / or matching stock grant created by the exercise, we went ahead and linked the exercise transaction to them. For the original option grants that were exercised, if the exercise was full, we unhide them and show that they were 100% exercised. If the exercise was partial, we show the original granted quantity minus the exercised quantity.
- If we couldn't find the original stock option grant, we created an option grant with the exercised quantity and marked it as fully exercised. We added a comment to this option grant so you can easily identify them: "Split from an option grant during an exercise, prior to March 2019 option management release."
Action needed from cap table admins
Please go to the Ownership -> Plans and Equity Awards view in Captable.io and review your exercises. You will see a new Exercises table containing all your stock option exercises.