How to Cancel Employee Equity Awards in Qapita

How to Cancel Employee Equity Awards in Qapita

This guide provides a step-by-step process for canceling employee equity awards within the Qapita platform. This action is typically performed when an employee leaves the company before their granted options or units have fully vested, or for other specific reasons requiring the forfeiture of awards.

Important Note: Canceling units ensures that all unvested or previously vested units designated for cancellation are correctly accounted for and moved into the 'Cancelled' bucket within your equity management system.

Steps to Cancel Equity Units:

1. Navigate to Grants:

Begin by clicking on Equity Awards in the left-hand navigation menu. From the sub-menu that appears, select Grants.

On the Grants page, find and select the specific stakeholder (employee) whose equity award you wish to cancel. You can use search and filter options if available to quickly locate the relevant individual.

1. Access Award Options:

Once you have located the stakeholder, navigate to their specific award. In the displayed row or card for that award, click on the three dots (...) icon, which typically indicates more options.

From the dropdown menu that appears after clicking the three dots, select the option labeled Cancel Units.

A new dialog box will be displayed, presenting the comprehensive details of the grant you are about to modify. Review these details carefully to ensure you are canceling the correct award.

In the dialog box, select the Cancellation Date. This date signifies when the options or units are officially canceled.

Note: The Cancellation Date must fall between the original Grant Date and the current date.

If you intend to cancel both unvested and any previously vested units associated with this grant, click Yes in the Cancel All Units option.

Alternatively, if you only wish to cancel a specific number of units (not all), you can manually enter the desired quantity of units to be canceled under the Vesting Details table.

1. Provide Reason for Cancellation:

Type a clear and concise Reason for cancellation in the dedicated text field. This is important for record-keeping and auditing purposes.

You may also add any relevant Comments regarding the cancellation of these options. This field can be used for internal notes or additional context.

If there are any supporting documents, such as a termination agreement or a cancellation policy document, you can add them. Either drag and drop the file(s) into the designated area or click Choose files to browse and upload them.

Finally, click the Cancel Units button at the bottom of the dialog box to finalize the cancellation process. A confirmation message should appear indicating successful completion.

What Happens Next?

Upon successful cancellation, all specified units (whether unvested or vested and opted for cancellation) will be officially moved into the 'Cancelled' bucket within your Qapita platform equity cap table. This ensures accurate and up-to-date records of your company's equity awards.