Bulk Recognition of Performance Conditions

Bulk Recognition of Performance Conditions

This document provides a comprehensive guide for Qapita clients on how to efficiently manage and recognize performance-based vesting rights for employees in bulk. When performance-based vesting rights are awarded, the vesting schedule for the respective employee is typically updated manually. The crucial next step for the company is to formally recognize or approve the achievement of these performance parameters, either as fully achieved, partially achieved, or not achieved at all. This recognition can be performed at an individual grant level or, more efficiently, in bulk for multiple grants simultaneously.

Note: This guide focuses on the bulk recognition process. For recognizing individual grant's performance conditions, please refer to our separate guide on "Individual Grant Recognition."

To Recognize Performance Conditions in Bulk:

Click Equity Awards in the left menu, then select Grants.

Navigate to the 'Equity Awards' section located in the left-hand menu of your Qapita platform. From the expanded options, select 'Grants'. This will take you to the overview of all grants.

Click the Action dropdown, then select Grant Action > Recognize.

On the Grants page, locate the 'Action' dropdown menu. Click on it to reveal a list of available actions. From this list, hover over 'Grant Action' and then select 'Recognize'. This action initiates the bulk performance condition recognition process.

Upon selecting 'Recognize', the Performance Condition Recognition page will be displayed, presenting a list of grants awaiting performance evaluation.

Filter the Grants (Optional)

By default, the 'Status' filter on the Performance Condition Recognition page will be set to “Due”. This setting automatically displays all tranches that are past their vesting date and are pending recognition.

You can refine the list of grants by applying various filters to narrow down your search for specific performance conditions or stakeholders. The available filters include:

• Performance Condition: Allows you to search for grants associated with a specific performance condition.
• Stakeholder: Enables you to search for grants linked to particular employees or stakeholders.
• Grant ID: Use this to find grants by their unique identification number.
• Vest Date: Filter grants by a specific vesting date range. Please note that the date range for this filter is limited to a maximum of 60 days.
• Status: This crucial filter helps you manage the visibility of grants based on their recognition status:
  • Due (Red Exclamation !): This is the default selection. It displays all tranches where the vesting date has passed, and the performance condition has not yet been recognized.
  • Not evaluated (Grey Exclamation !): Shows all tranches that have not yet undergone any performance evaluation.
  • Evaluated (Green Tick ✓): Displays tranches for which the performance condition has been successfully evaluated and recognized.

Select the grants using the Check box.

Once you have filtered the grants to your preference, proceed to select the specific grants you wish to recognize in bulk. Use the checkbox located next to each grant to make your selections.

Select the Recognition Date.

Choose the date on which the performance condition is being recognized. The Recognition Date cannot be set to a date prior to the Grant Date. This date signifies the official day of performance recognition.

You can utilize the "Copy Down" feature to quickly apply the same recognition date across multiple selected tranches. A dropdown menu will appear with two options: "This Page" and "All Pages."

• This Page: Applies the selected recognition date to all subsequent tranches displayed on the current page.
• All Pages: Applies the selected recognition date to all subsequent tranches across all pages of the filtered results.

Check or Uncheck the 'Achieved' box.

By default, the 'Achieved' checkbox is selected, indicating that the performance condition is considered fulfilled. If the performance condition was not met, or only partially met, you can uncheck this box. Unchecking 'Achieved' will automatically populate the payout percentage as "0", and the options due to vest will automatically move to the 'Cancelled' column.

Note: If you uncheck the 'Achieved' box, you will be prompted with an option to apply this selection to all grants on the current page or across all pages, similar to the "Copy Down" feature, streamlining the process for unachieved conditions.

[Image: Screenshot showing the 'Achieved' checkbox and its impact on 'Payout %' and 'Cancelled' columns.]

Enter the Payout % Value.

Enter the actual percentage of the payout based on the performance criteria met by the employee. The value you enter must be within the valid range specified in the 'Condition' column for that particular grant. This ensures compliance with the predefined performance terms.

Review Auto-Calculated 'Options Vesting'.

The 'Options Vesting' field is automatically calculated by the system based on the 'Payout % Value' you entered. This provides an immediate view of how many options are eligible to vest.

Example:
Options due to Vest: 10,000
Payout Percentage: 70%
Options Vested: 7,000

Review Auto-Populated 'Options Cancelled'.

The 'Options Cancelled' field is also automatically populated. This represents the portion of options that will not vest, calculated by subtracting the 'Options Vested' from the 'Options due to Vest'.

Calculation: Options due to vest - Options Vested = Options Cancelled
Example (Cont.):
Options due to Vest: 10,000
Options Vested: 7,000
Options Cancelled: 3,000

Click on Recognize.

Once you have reviewed all the details and are satisfied with the input, click the 'Recognize' button to finalize the bulk recognition process. A confirmation pop-up will appear, asking you to confirm the action.

Note: If there are any validation errors (e.g., incorrect payout percentage outside the defined range, invalid dates), the 'Recognize' button will be disabled until all errors are corrected. The system will typically highlight the fields with errors.

Click on Yes, Recognize in the confirmation popup.

In the confirmation pop-up, click 'Yes, Recognize' to proceed with the bulk recognition. This action will apply the specified performance condition outcomes to all selected grants.

Note: Upon successful evaluation and recognition of the Performance Condition, the status of the associated grant(s) will automatically change to "Evaluated", reflecting the completion of the process.

By following these steps, you can efficiently manage and recognize performance conditions for multiple grants in Qapita, ensuring accurate vesting and reporting of equity awards.