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What Stock Options and SAR types does Stock Option Software cover?

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Global Shares deals with companies and plans whose locations and plan participants are spread across the globe – this means we deal with every type of stock option grant imaginable and we have ensured our systems can cater for the different stock option grant types and stock appreciation rights plan grants distributed worldwide.

The below table gives a flavor of the stock option and Stock appreciations rights plan grants that we cater for in our system today.

This huge range of stock option grants on offer through our stock option module means clients can display to participants and receive reporting on their stock option grant data the way they want it.

 

What Stock Grant Type are you considering?

Track every type of stock option & SAR and administer and display your grants the way you want.

 

USA Option Grant Types

  • NQO – Non-Qualified Stock Option
  • ISO – Incentive Stock Option
  • PNQO – Performance Non-Qualified Option
  • PISO – Performance Incentive Stock Option

 

UK Option Grant Types

  • EMI – Enterprise Management Incentive
  • CSO – Company Share Option
  • UKASO – UK Approved Share Option
  • UKUSO – UK Unapproved Share Option

 

Rest of World Option Grant Types

  • OTCO – Over the Counter Option
  • PO – Premium Option
  • ESO – Employee Stock Option
  • CGO – Capital Gains Option

 

SAR Grant Types

  • CSAR – Cash Settled Appreciation Right
  • SSAR – Stock Settled Appreciation Right
  • UAR – Unit Appreciation Right
  • PSO – Phantom Share Option

 

Stock Option Vesting

One of the primary benefits of stock option vesting in the Global Shares system is that any type of vesting schedule can be associated with a stock option grant whether it be a simple three year 100% cliff vest or a more complex forty eight-month 2.08% vest with associated rounding.

Once stock option vesting has been set up then the automated vesting service means that the vesting schedule associated with the option grant is updating continuously to ensure a correct live balance at all times.

Reports are also directly tied into this service as well so that stock option reports are always reporting the correct vested and unvested balances.

Participants will also see the same on their front end portal where they can also see intuitive statements showing future vesting coming their way with associated monetary values of those vesting stock option grants.

 

Stock Options calculator

Ensuring our clients plan participants understand and appreciate what they are receiving when they are granted stock options is paramount to what Global Shares does.

To achieve this end we provide the integrated participant stock option portal educational videos explaining what a stock option is, glossaries providing concise explanations on stock option grants and also interactive stock option calculators which allow the participant to model on their stock option grants.

 

Exercising Options

Global Shares is an industry-leading provider of equity administration solutions offering highly innovative web-based Software specifically designed for companies offering employee stock compensation as well as offering a range of equity services and financial reporting.

We work with large and small, private and public companies with participants in 100+ countries worldwide.

We attribute our success to date to our refreshing client-centric approach, our fully customizable products and our sharp-minded Team of experienced Compensation Professionals.

Our in-house share plan platform, EquityAdmin, will alleviate all past administrative complexities thanks to our accessible, simplified, user-friendly software.

Once the nonqualified stock option has vested on the administration system it will dynamically show as exercisable on the front end participant view, where exercising options through

Global Shares intuitive exercise wizards has never been easier.

Global Shares facilitates the following exercise types for all stock option grants:

 

Same-Day Sale/Exercise & Sell All

The focus of this type of exercise is to generate an immediate cash balance, rather than the issuance of stock.

There is no requirement to make an upfront payment as option costs, applicable taxes and fees are paid with the proceeds of the sale of shares generated from exercising options. The net proceeds in cash are then distributed to the employee. This exercise can be placed either as a market or limit order.

 

Sell to Cover

The focus of this exercise is to acquire stock without paying for the shares upfront. With a sell to cover exercise, the goal is to cover the non-qualified option costs, fees and applicable taxes by selling shares equal to that cost.

The remaining stock balance will then be issued to the employee. This exercise can only be placed as a market order.

 

Exercise and Hold

For an exercise and hold, the participant uses their personal funds to cover the option cost, fees and applicable taxes.

If the participant exercise 100 options, for example, then that participant would pay the cost of the exercise either by check, wire transfer or payroll and would then receive 100 shares of company stock.

 

Withhold to Cover Exercise

Typically used by private companies this exercise method is similar to sell to cover except that shares are withheld prior to issuance to cover the cost of exercise with the remaining shares being issued into the participant’s name.

This method can affect how the options are accounted for through financial reporting.

When using one of the first two alternatives this means that shares are being sold and Global Shares systems facilitate three types of sale orders including Market Orders, Day Limit Orders and Good until Cancelled Orders.

Global Shares has also recently introduced the ability to allow participants to exercise both at Grant and Tranche Level.

This means that participants can choose the specific tranches they want to exercise as there may be a different tax impact for the exercise of individual tranches.

 

Grants for a Stock Appreciation Rights Plan

Global Shares doesn’t just cater for stock options but also has the facility to track grants associated with stock appreciation rights plans.

That appreciation right can be stock or cash-based and will also tie into our Financial Reporting liability methodology if cash-based.

Exercising a stock appreciation rights plan grant will generate a cash line or alternatively a share issuance if it is phantom based.

Check out our stock appreciation rights plan demo today for more information on how we cater for a grant, vesting, exercise and financial reporting for these appreciation grant types.

Global Shares provide Stock Option Software and support services for companies all over the world. Request a free demo to find out more about our other products and services.

Transform your Stock Plan Administration with our industry-leading technology. Have questions about our Stock Option software & services?

Our experts would be delighted to discuss your stock plan requirements.

Let us show you how with a quick demo of our Software.

Please Note: This publication contains general information only and Global Shares is not, through this article, issuing any advice, be it legal, financial, tax-related, business-related, professional or other. The Global Shares Academy is not a substitute for professional advice and should not be used as such. Global Shares does not assume any liability for reliance on the information provided herein.

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