Modeling Employee Stock Options
To add an Employee stock option go to Dashboard > + button bottom right >
Select Stock Grant
Select Grant Type: Employee Stock Option
Basics
Enter the basic information for you Client's Stock Options here.
Important things to note and more information on "Grant Type".
Restricted Stock Unit (RSU)
This is a promise from the employer to give the employee shares of the company's stock in the future if certain restrictions are met.
Restricted Stock Award (RSA)
This is like an RSU, except with RSAs you purchase the shares on the day they're granted.
Incentive Stock Options (ISOs) are popular measures of employee compensation received as rights to company stock.
These are a particular type of employee stock purchase plan intended to retain key employees or managers.
ISOs often have more favorable tax treatment than other types of employee stock purchase plan.
If your client has shares that are already vested you will be prompted to "Add Details" for those vested shares. Click on "Add Details".
From here you will add a share block.
Once you've entered this information you can either add another share block or click "Done".
Growth
From the Growth screen you can either set a general Stock Growth Rate or enter specific holdings in the holdings tab.
Optional: Scheduling a liquidation event
If you would like to schedule a Liquidation Event go to the Liquidation section.
1. Liquidation Type: You will be required to select "Number of Shares", "All Available", or "Fixed Amount".
2. You will need to select a liquidation event from either an existing event on the timeline like "retirement" or double click anywhere on the Timeline to create a new event. Once selected click "Set as Liquidation Event."
Once you've selected the liquidation event you will be allow to enter the number of shares to be liquidated. Once entered click "Done" in the top right corner to save and return to the dashboard.
Once you have returned to the Dashboard you can toggle on Details>Year View use the slider bar to look at the liquidation event year and you will be able to see the expected proceeds.
