Purpose: To help you understand equity on the Total Rewards statement. 

Table of Contents

• Setting up equity
• Equity grant types and fields
• Adding equity to the employee record
• Viewing equity in the Total Rewards statement

From Settings (gear icon), navigate to Total Rewards. In the Total Rewards section, click the gear icon on the right.

Select either Growth Calculation or Exact Amount, then enter the equity details in the selection.  

Growth Calculation is a company valuation/outstanding shares. With this, employees will be able to see the potential growth stock option by calculation. Exact Amount is a fixed overall price per share. With this, employee will only be able to see their equity grants at a fixed price without any calculation.  

For the Growth Calculation option, you'll need to set the min multiplier and max multiplier for it to show in the Total Rewards statement correctly.  

Add the conditions and disclaimers specific to your company's equity terms and click Save to save changes. 

There are five different grant types available; ISO, MIU, NSO, RSA, and RSU. Here are the grant types and the fields that show with each type:

ISO

ISO stands for Incentive Stock Options (ISOs). ISOs give an employee the right to buy company shares and can qualify for favorable tax treatment. If issued under a qualified plan, ISOs are not subject to ordinary income taxes at grant or exercise; instead, only the profit made from the sale of the shares is taxed at a capital gains rate. Employees must usually hold the ISOs for a certain amount of time to gain that favorable tax treatment. 

MIU

MIU stands for Management Incentive Unit (MIU). MIUs are a type of equity compensation plan that is used to reward key employees, often at the senior management or executive level, for their performance. MIU agreements typically give employees the right to receive units or equity in the company if they meet agreed upon performance goals and usually contain certain restrictions on selling or transferring the MIUs and forfeiture of the units upon termination of the key employee.

NSO

NSO stands for Non-Qualified Stock Options (NSOs). NSOs give employees the right, within a  designated time frame, to buy a set number of shares of their company's stock at a preset price (sometimes called the “exercise price”) at the end of a specified vesting period. There is no holding requirement for NSOs. With NSOs, you pay taxes both when you exercise the option (purchase the shares) and sell the shares. They are taxed as ordinary income. 

RSA

RSA stands for Restricted Stock Award (RSA). RSAs are stock awards that are usually restricted in the following ways: (1) the stock is forfeited if service requirements or other vesting conditions are not met, and (2) the participants' ability to assign, sell, or otherwise transfer the shares is limited. Most RSAs are granted under a restricted stock plan or other equity incentive plan that sets forth the applicable restrictions.

RSU

RSU stands for Restricted Stock Units (RSUs). An RSU represents a promise from your employer to give you shares of the company's stock (or the cash equivalent) on a future date if certain criteria are met (e.g., the sale of the company). RSUs have no tangible value until the vesting is complete, and are assigned a fair market value when they vest. Holders of RSUs are not entitled to voting, dividend or other stockholder rights until the RSUs vest and the shares are transferred. Unlike with stock options, with RSUs you don't have to pay anything to obtain them. Upon vesting, they are considered income, and a portion of the shares are withheld to pay taxes. You then receive the remaining shares and can sell them at your own discretion. 

Once you've set up your company's equity information in Total Rewards settings, you'll need to add an Equity table to the employee Job Tab for it to show in employees' Total Rewards statement. The Equity table will be in addition to the existing Stock Options table; however, the Total Rewards statement will only pull information from the Equity table, not the Stock Options table.

There are two ways for an admin or an owner to do so - by adding the table to the Job Tab to an individual employee's profile or by using the power edit option for multiple employees.

Adding the Equity table to an individual employee’s profile

To add the Equity table to the employee profile, click on the Job Tab, then click Edit Fields. In the pop-up box, click Add Fields to see a list of available standard fields you can add to the tab you are viewing on the employee profile. 

If you scroll to the bottom of the list, you will see a break in the list that indicates the available tables you can add to this specific tab. Click on the Equity table, and it will appear at the bottom of the Job Tab.

From here you'll need to manually add the information into Equity table. To do this click +Add Entry in the Equity table to add the specific equity information. In the modal, the fields will change depending on the type of grant selected. 

Adding the Equity table to multiple employee profiles.

Click the action menu* on the People tab and select Power Edit Employees. *To see the action menu, you must view People under the List view, as shown in the screenshot above.

Click on an employee name and click ">" to move them over to the Selected Employees area. Do not forget to filter the list of available employees if you need to select employees from a similar department, division, location, etc. You can do this by clicking All Employees below Available Employees.

Only active employees who have a hire date OR an active employment status will appear for you to edit. You cannot use Power Edit for terminated employees or any employees with an inactive status.

Type equity in the quick search bar or click Equity under the Job dropdown to move it over to the Selected Fields area.

Add your equity information to the Equity table under the Fields to Change section. Enter the applicable data that applies to all selected employees and click Next Step.

The new Equity table will contain the following fields:  

• Grant Type (ISO/MIU/NSO/RSA/RSU)  
• Custom Grant Type Name  
• Grant Date: Date Field  
• Vesting Start Date: Date Field  
• Number of Equity Granted: Integer field  
• Strike Price: Currency Field  
• Vesting Schedule: Monthly/Quarterly/Annually  
• Vesting Months: Integer Field  
• Cliff: Checkbox Field  
• Cliff Months: Integer Field 

Preview your changes by selecting a specific employee who was updated or scroll through the employees one by one. Once the changes look correct, click Save & Finish. The Equity table will appear on the employee profile(s) under the Job Tab.

Once enabled, the equity section will show in the Total Reward statement. The equity section contains the following:

1. Equity summary: Summary of current equity for the stated year.
2. Estimated valuation growth: Interactive estimation of growth based on company information. This section will only show if Growth Calculation was selected. (It will not show if you selected Fixed Amount.) The growth slider will only impact this section of the statement, and all other numbers will stay the same based on the current company valuation (i.e., 1X). 
3. Equity Details: Summary of grant name, vesting start date, strike price, estimated cost to exercise, estimated total value, percent value, and vesting schedule. 
4. Conditions and Disclaimers: Conditions and disclaimers that specific to your company.