Ledgy allows you to open an exercising window and eligible stakeholders can express their intent through their Ledgy dashboard. After stakeholders express their intent, you, as the Owner of the company, receive their requests and can approve them.
Company side, allowing users to request to exercise within a specific time frame:
To open the exercising window, go to the Equity Plans page, and under the Stakeholders section click on the top right button Allow Exercising.
This will then open up a window in which stakeholders can submit exercise requests for options that are vested until the chosen Effective Exercise Date. The exercising window will open from immediately after you click Enable now, until the selected Enable until date.
You can also easily edit this window after it has been opened by clicking on the edit button under Exercise Requests.
Employee dashboard side, once the exercise window has been opened:
Once the exercise window has been opened, any portfolio user eligible to exercise options (people with vested options) will get an email notifying them that they can request to exercise during the specified time frame.
They can then request to exercise their vested options (those that have been and will be vested by the effective exercise date defined by the company) by going to their Ledgy dashboard and clicking Request exercise in the first section of the dashboard on the right.
They can then select how many options they would like to exercise and be informed on how much payment is necessary if applicable.
If the employees try to exercise more than they have vested by the effective exercise date, Ledgy will not let them through.
Company side, once they have received a request to exercise:
All requests to exercise from employees are visible on the Equity Plans page, at the top:
Here, you can hover over the request and click the check mark on the right side to accept the request.
In case of any mistakes from the employee side, you can still edit the date and number of options while you’re accepting the request.
The next step is available in the Enterprise plan
You can trigger the workflow to create the Exercise notice document and fill out the relevant information automatically and then send the document for signatures. Learn more about it here.
Once the options are exercised by clicking on the Exercise button above they will show up as a transaction on Ledgy.
Once the transactions are verified, documents signed and payment (if applicable) is received, admins can publish the transactions which automatically updates the share register, employee dashboard and equity plan status.
To see this action from both sides with comments explaining what is happening along the way, click on this link!