Expense True-Up for Termination Entered at a Later Date

When you enter a participant An individual or entity participating in an equity compensation plan and/or employee stock purchase plan's termination in the system after the termination has occurred, set the Effective Date field equal to the date you enter the termination rather the participant's termination date. This causes the expense to accrue until the date of entry and expense trues up on that date. Enter the termination by clicking Administration > Participants and choosing the participant record. Read Terminating a Participant for detailed instructions.

For example, the participant's termination date was 1/15/2018 but since the termination date was not entered, expense was booked for January and February 2018. When you enter the termination in the system on 3/20/2018, the forfeiture Shares forfeited when there is a performance cancellation on a performance award occurs and the Effective Date of the forfeiture defaults to the actual termination date, causing the expense to true up in January only. If you adjust the Effective Date of the forfeiture to the system entry date Date on which a record is entered into the EM platform of 3/20/2018, the previously booked expense for January and February does not change and the true up to the correct expense occurs in March 2018.

Adjust the entry date for each grant held by the participant at termination:

  1. Click Administration > Grants > and filter the list by the terminated participant's name or ID. This displays a list of all grants that need to be adjusted in the case where a participant had multiple grants.
  2. Click a grant record in the list to display the grant profile page.
  3. Click the Cancellations tab.
  4. Update the Effective Date field to the system entry date in the Cancellation Shares cancelled when a terminated participant has unvested shares set to forfeit on termination Detail section for all rows displayed. If the grant has multiple tranches, you must adjust the date for each tranche A segment of a vesting schedule that specifies the number of shares vesting on a particular date.
  5. Click ACTIONS > Save & Exit. This returns you to the list of grants filtered for the participant.
  6. Repeat steps 2 – 5 for every grant listed for the terminated participant.