Improper practices in granting stock options can result in errors in tax filings which can have legal ramifications. There are many steps for the compensation team to take when it comes to granting employees with stock options. In this sample stock options process flow, we provide suggested steps to take when granting employee stock options to ensure all processes are appropriately followed.
This document can be used as a general guide to understand and review the stock options process. Organizations should continuously update and monitor the processes included in this document to ensure that they accurately reflect business operations.
This sample stock options process flow shows steps such as:
- Approving individual and group stock options grants
- Preparing LTI agreements
- Entering information for individual grant
- Signing long-term incentive plan agreement
- Sending activity confirmation sheet to the compensation analyst