Introduction to Exercise Configurations - Option Award

As an administrator, you have the flexibility to Configure the Exercise Window within Qapita platform. This guide will walk you through how to configure Exercise Window, allowing you to set up Stakeholder Details, Exercise Consent, Payment Configuration, FMV & Sale Price, and much more.

Steps to Configure Exercise Window:

1. Click Settings > Configurations in the menu on the left.
2. Under Equity Award - Other configurations, click Exercise Configurations - Option Award. The Exercise Configuration is displayed.

 Exercise Window:

Turning on this option, you will get the option to Configure exercise the window duration, Configure applicable grantees, Configure Notification.

Stakeholder Details:

1. In the Stakeholder Details Section, you will get the option to change what all details should be visible/ Editable to the employee.
2. You can record the details like Personal Details, Address , Bank Details, Demat Details.

Exercise Consent:

In the Exercise Consent section you get a option to add or remove Exercise form Consent, You can setup Exercise form Template as well as the Set Disclaimer For Exercise.

Tax:

In this section, you have the flexibility to configure how tax information is displayed throughout the exercise flow. This includes options to change Currency, Configuration for the display of tax in exercise flow, and Tax Exemption.

Payment Configurations:
 This section helps you set up how payment and tax details are shown during the exercise process. 

Payment Window:

This section allows you to manage when and how payments can be made during the exercise process.

1. Enable Payment Window: Turn the payment window on or off for exercise transactions.
2. Set Payment Period: Choose how long the payment window stays open—either by setting a fixed time frame or a number of days from the exercise date.
3. Custom Message Display: Choose to show a default message or write a custom one when the payment window closes.
4. Auto Disapproval: Automatically reject exercise requests if they come in after the payment window has closed.
5. Notification Settings: Send alerts to option holders if the payment window is extended.
   
   

FMV & Sale Price: 

This section helps you set up the Fair Market Value (FMV) and Sale Price for option exercises.

Select between:

Other Configurations: 

This section lets you customize how employees can exercise their stock options.

1. Vest Level Exercise: Allow employees to exercise only the options that have vested. 
2.  Underwater Options: Permit exercising options even if FMV is lower than the exercise price. 
3. Configure Number of Options: Set rules for minimum or multiple units that can be exercised. 
4. Validate Exercise Amount: Ensure the payable amount is at least equal to the face value of the security. 
5. Exercise in Decimal Units: Enable employees to enter option quantities in decimal format. 
6. Quick Notes: Display custom messages on the employee exercise screen for guidance or reminders.