What is the difference between pools and plans and how to use each one?
Pools: Amount of capital allocated for equity grants. The Pools page is where you can see the overview of the pool size, how many grants can you still grant, how many were exercised in total, etc.
Plans: A subcategory of a pool that allows you to separate the grants for example by:
- grant type (option, warrant, phantom...)
- country (virtual shares for German employees, warrants for Swedish, etc.)
Plans don't have a defined allocated amount, they draw from the pool they are connected to.
Thus, when a grant is terminated the amount is returned to the original pool rather than the plan.
Workflow when importing your equity plan to Ledgy
1. Add a pool
Go to Equity plans > Pools and click "Add Pool" in the top right corner.
2. Allocate the amount of capital to the pool (as defined in the Investment Agreement, for example)
This is the total amount allocated to future grants.
3. Create plans
- Go to Equity plans > Plans and click "Add Plan" in the top right corner.
- Select the type of instrument to be granted: option, phantom, warrant, stock.
- Create presets for easier workflow and automation.
An example of a setup
An international company has a total pool size of 74054, and is named "Employee pool".
The company is present in 3 countries with different employee award jurisdictions, so they need 3 plans: 1 in the UK, 1 in Sweden, and 1 in Germany.
- Plan 1: UK Option plan
- Plan 2: SE Warrant plan
- Plan 3: DACH Phantom share plan
They create 1 pool, which defines the total capital reserved for equity awards, and then create 3 separate plans.
On the Pools page, we can see the overview of how big the pool is, how much has been granted, etc.
On the plans page, we can see how much we granted in each individual plan, and track jurisdiction-specific data points seamlessly.