Incentive plans
What a plan is, how it vests and how it turns into money in a liquidity window.
- What an incentive plan is An incentive plan is how Sociedad Ejemplo, S.A. shares with its team part of the value it creates: it grants you units that become yours over time and that turn into money when the company opens a liquidity window.
- What a liquidity window is A liquidity window, or buyback offer, is the period during which someone, often the company itself, buys part of the vested units of an incentive plan at a set price. In Sttok it is a purchase offer in "Incentive market", and in a company that is not listed it is the way to turn those units into money.
- Open a buyback offer In Sttok, a buyback offer is a "Unit purchase offer" in "Incentive market". You choose who buys (it can be the company itself, through treasury shares), how many units, the price per unit, the limits per seller and the dates. Beneficiaries accept it and you manage each transaction from the "Admin panel".
- Sell your units in a liquidity window While a purchase offer is open, you can sell part of your vested units, up to the maximum the offer sets. You go to "Incentive market", open the offer in "Purchase offers" and accept it. During the transaction, the company may ask you for information, documents and your signature before validating it.
- The pool and the resolutions that change it The pool is the total number of units the company has reserved for its incentive plans. It is approved by the general meeting, grows or shrinks with new resolutions, and is split into units granted to beneficiaries and units available to grant.
- Create an incentive plan You create a plan from "Incentive Plans" ("Plans list" menu) with "Add Plan": the plan type, the name, the start date, the plan's shares (pool), the price per unit, which is the exercise price, and the vesting schedule (cliff, vesting and speed). You can create it as a draft and ask Sttok to generate the conditions for each beneficiary.
- Grant units to a beneficiary Granting means giving a person a number of units of a plan, with "Add Beneficiary" in "Incentive Plans", which opens the "Add Beneficiary to the incentive plan" dialog: the beneficiary, the plan, the grant date, the units and the invitation date. The grant inherits the plan's conditions, unless you change them for that person, and Sttok can send them the invitation letter to sign.
- The invitation letter The invitation letter is the document in which the company offers you units of an incentive plan: it states how many, from which plan, on what conditions and with what schedule. When you accept and sign it, the grant becomes final.