Terminating a Participant

Follow the steps below to enter a termination for a participant An individual or entity participating in an equity compensation plan and/or employee stock purchase plan. If you have multiple participant terminations to process, you can use the Terminations (terminations.txt) importer template, accessed by selecting Settings > Utilities > Importer Templates. Note that you cannot use the BULK EDIT command under the ACTIONS dropdown menu to terminate multiple participants.

If a participant to be terminated holds active grants, you should check the plan-level termination provisions that determine if a grant forfeits, accelerates, or continues to vest based on the termination type; for example, a voluntary termination has the grant set to continue to vest for three months post-termination. The simplest way to check this is to click Administration > Participants and click the record for the participant to be terminated. In the ACTIONS dropdown menu on the participant detail page, click View Grants to view a list of the participant's holdings. You can click each grant record and if needed, change the termination provision in the Plan Provision Overrides section.

The system does not support future termination dates. You must wait until the termination date occurs and then enter the termination into the system. If you enter a termination prior to the effective date, reports do not calculate properly.

If you are entering the termination after the actual termination date and want to true-up the expense for grants held, read Expense True-Up for Termination Entered at a Later Date for detailed information and instructions.

  1. Select Administration > Participants to access the list of participants.
  2. Use the filters across the top to find the participant to be terminated. Click anywhere in the row to open the participant record details.
  3. On the Profile page, scroll down to the Status section and select Terminated from the Status pull-down list. Select a termination date (today's date or in the past but not in the future).
  4. Select the Termination Reason from the pull-down list – Involuntary Termination, Termination Due to Death, Termination Due to Disability, Termination Due to Retirement, Termination for Cause, or Voluntary Termination. The reason dictates how outstanding options and awards are handled upon termination.
  5. If desired, click the TERMINATION PREVIEW button to generate a participant report with the status of the participant's holdings. Note that the button label changes to CLOSING STATEMENT after the termination record has been saved.
  6. In the ACTIONS dropdown list, click ACTIONS > SAVE to save the settings and remain on the page, ACTIONS > SAVE & EXIT to save the settings and close the page, or ACTIONS > EXIT WITHOUT SAVING to close the page without saving the settings.

To confirm the termination, especially if you have processed a number of them, you can run the Terminated Employee List under Reports > Run Reports. To locate the report quickly in the list, type "term" in the filter at the top of the Report Title column.