Milestone Based Vesting
Whats new?
As an alternative to time based vesting, the vesting of grants can now be subject to the achievement of specific company or individual goals.
How does it work?
On the Vesting menu under Equity Administration, there is a new tab named Manage Milestones. Within this tab, you can create milestones by clicking the ‘Add Milestone’ button. Milestones can also be imported in bulk here using the import template.
On the Manage milestones screen, click ‘Add Vesting Schedule’, select the schedule type as ‘Milestone’ and link one or several milestones by selecting them from the milestone dropdown menu. You can also assign a weighting for each milestone selected.
When a milestone type vesting schedule has been created, administrators can add a grant and associate it with the newly created vesting schedule.
To evaluate the milestone, navigate to Vesting > Manage milestones and click on the milestone name. Click ‘Evaluate’ and input the payout % and the evaluation (vesting) date. Click ‘Confirm’ to submit the evaluation.
Once submitted, all grants associated with the evaluated milestone will update to reflect the payout % and evaluation dates. Any shares received as part of the evaluation will appear as vested and become available to transact on the platform.
Why is it important and how am I affected?
This feature provides enhanced capabilities for administrators to record the details of their milestone based equity plans on the platform. Milestone based vesting allows administrators to control when a grant will vest and how much of the grant will vest, based on the stakeholder or companies achievement of pre defined milestones.