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 How does international dividend payout work ?

Thomas Palmer's profile image
Thomas Palmer posted 09-06-2023 16:57

My company is based in the US. I work abroad however have a US Bank account. When I exercise my options will the funds be transferred to the bank account where my pay check goes (i.e. via payroll process) or can I designate where the funds are to sent ? 

Brent Devey's profile image
. Brent Devey

Hey Thomas!

Exercising stock options means purchasing shares of the issuer’s stock at the set price defined in your option grant. When an exercise is initiated, funds will be pulled from the bank account added to your Carta account. The steps to add a bank account to your account can be found in this support article. For U.S. companies with online transactions enabled, there are two options for exercising: ACH or wire transfer.
  1. To use ACH, a U.S. bank account must be used. For this option, follow the detailed instructions provided in this support article.
  2. If a non-U.S. bank account is selected, the exercise must be done via wire. You can find the necessary steps outlined in this support article.
Please be aware that even though you can add multiple bank accounts to your Carta account, it’s crucial to specify which account should be used for online ACH transactions. This ensures a seamless process.
Let me know if that makes sense or if you have any other questions that I can answer!
Thomas Palmer's profile image
Thomas Palmer

thanks  Brent...if the funds are moved into a foreign bank account what exchange rate would be used ? Would it be the spot rate of the that day ?

Brent Devey's profile image
. Brent Devey

Hey @Thomas Palmer. As Carta doesn't charge any fees during the money movement, we'd advise you to consult your bank to understand what fees/exchange rate they would charge to complete the movement.