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How To Run A Share Option Scheme for your business with OptIn PC: A blog about running a share option scheme.

Yiannis Papadopoulos

Oct 14, 2022 11:20 am

Now that you have the authorisation and created your own Employee Share Options Scheme, it is time to distribute, sign contracts, vest employees' rights, exercise, issue share certificates, and do annual valuations. That sounds a lot, doesn't it? Well you are right. But let's break it down and explain how a partner like OptIn can help you grow your business while sharing equity by saving around 60% to 80% of the legal / admin time and a similar percentage of the costs.

  • Share Option Pool: For each one of your schemes, you can use a Share Option Pool, so it's easy to get the rules right and not repeat yourself during the process. So we create the Share Option Pool for you based on your board minutes authorisation.
  • Cliff Date: Firstly, you need to decide if there is a cliff date or if the vesting of the share options will start immediately from the grant date. It's super easy to choose that when you grant the option to one of your employees by stating the "Vesting Start Date".
  • Vesting Schedule: You don't have to worry about that when it is a vesting share option scheme and not KPI based. The software calculates automatically and sends reminders to the relevant people.
  • Distribution: Everything is done automatically through our platform; once you create an option for the employee and grant it, the contracts are automatically generated and sent to the relevant people for signatures; once accepted, the employees have their agreement and bespoke dashboard access to view their equity growth.
  • Exercise of the rights: That can be requested from the option holder, and you will be notified so you can accept the request. Equally, you can also exercise employee rights with administrator access to the platform.
  • Share Certificates: Now that the exercise of share options has occurred, you need to issue a share certificate; wrong, we do that for you automatically when the exercise happens within our platform. We send it to the relevant people for signature and then to the shareowners for their records.
  • Valuations: To do all the above, you need a valuation; we also managed to automate that process. All you need to do is keep the platform up to date with one Balance Sheet, and then our algorithm takes over and generates the valuations for you.
  • Salary Certificates: No worries, we got you covered. In some countries like Greece, you must issue salary certificates for the option shareholders for tax purposes. We generate that automatically through our software and send it via email. But also can be found in the individual's dashboard.

After all, it isn't that hard, is it? Now that OptIn has you covered, you are ready to focus on what matters to you, your company's growth. We will take care of the rest; at OptIn we offer personalised help from our experts alongside all the tools and documents to set up your scheme – automating the legal admin means our pricing is very efficient, book your free consultation to ease those complexities and have a partner with you on the growth journey.