Carta Collective

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  • 1.  How to exercise without FMV

    Posted 12-13-2022 09:28
    We have an employee who was terminated and he was trying to exercise his options but we have no FMV loaded into the system. How does he go about exercising them? We will not know the value before he exercises them by July 8th. Thanks.

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    Carta Admin
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  • 2.  RE: How to exercise without FMV

    Posted 12-13-2022 09:57

    Electronic exercise can be completed without a current fair market value for only the vested quantity of ISO (incentive stock option) grants.

    NSO (Non-qualified stock option) grants and early exercises cannot be processed electronically without a current fair market value on file. 

    The legal administrator of the account will be able to add a board-approved FMV on Compliance > 409a > Manage fair market value > Add FMV. 

    https://support.carta.com/s/article/exercise-without-fmv


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    Carta Support
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