Manual exercises

When an employee is ready to exercise vested options, here's how to record it.

Manage Equity → Options ledger → find the grant → Exercise Options

Enter the number of options, the exercise date, and the exercise method (cash or net/cashless). Upload the exercise notice and payment confirmation as documentation.

Two things to confirm before you process:

• The options are fully vested as of the exercise date

• If the employee has left, the exercise is within their post-termination exercise (PTE) window — options exercised after the window closes are typically forfeited

On net/cashless exercises:

The holder receives shares equivalent to the spread rather than paying cash.

Formula: (Options × (Current FMV – Exercise price)) / Current FMV = Shares issued

Tax note: In most AMEA jurisdictions, the exercise date is a taxable event for the employee. They should factor in the income tax treatment before exercising, and you may have employer reporting or withholding obligations depending on your country.

📖 Read the full guide: How to approve and manage option exercises →