Recognize Performance Conditions

Recognize Performance Conditions 

When an employee is awarded performance-based vesting rights, the vesting schedule for that employee is manually updated to reflect this change. As the next step, the company has to recognize or approve the performance parameters as achieved, partially achieved or not achieved at grant level. By doing this, the company can verify the performance against the vesting rights and approve the appropriate % of vesting. The remaining options get cancelled.

For example, the company can recognize only 60% of the options to be considered as vested. The balance 40% is not achieved and will be considered as unvested and cancelled.

To recognize the performance conditions:

1. Click Equity Awards in the left menu, select Grants.
2. Select the specific grant or search for the grant that has performance condition.
3. Click the icon   at the right and select Recognize.

4. In the displayed Performance Condition Recognition screen, enter the following details:

1. Recognition Date for the performance vesting. 
2. Tick the box to indicate that the performance condition is Achieved.
3. Payout % depending on the performance criteria the employee meets. 

For the fields Recognition Date, Achieved and Payout %, you can use the "Copy Down" feature. A drop-down menu will appear with the options "This Page" and "All Pages ". When you select a specific tranche and apply the "Copy Down", the values will be copied to all subsequent tranches on the same page, or across all pages, depending on your selection from the drop-down menu.

1. The number of Options Vesting. The number of Options Cancelled is automatically calculated and updated.                                                        

 Note: The Grey Exclamation indicates that the Performance Condition is not evaluated yet. The Red Exclamation indicates that the Performance Condition is past its Vesting Date and not yet been Recognized.

5. To select the performance condition, click  against it.

6. Click Recognize.

7. In the Confirm Recognition of performance condition dialog box, verify all details and click Yes, Recognize.

The Recognition Status displays the final tranche details that have been successfully recognized. 

Note: If the Performance Condition is successfully Evaluated, the grant status changes to Evaluated.