Responsibility: Stock Administrator.
After Variable Comp publishes the stock awards, you can view them using the Generate Grants inquiry page, and run an Application Engine program to generate grants using the Generate Grants page. You can run multiple runs of the same Variable Comp stock plan, pay out period, and group, to pick up any stock award that have not been processed.
As each stock grant is generated, each Variable Comp stock award record is updated with the grant number and grant value. Each grant created during this process adds a new record to the Grant table, using values in the award record and in the run control. The Variable Comp Plan ID is stored with each grant. You can select Reject Award Data for Plan ID on the Create Grants - VC Criteria process page if you want to reject all grants within a group ID.
6. Make appropriate adjustments for cancellations due to data entry errors.
Responsibility: Stock Administrator.
Once awards are generated, you may need to change them. Changes to the grant date or grant price may affect the award value in Variable Comp and must be transmitted back to Variable Comp for constancy between the two systems. You use the Modify Grant page to modify system-generated grants generated by the Generate Grant process or manually modify the grants using the Administer Grants component.
You can modify grants created from Variable Comp awards, as you do for grants you create manually online, only you cannot change the number of shares granted. This also applies if the grant is
split between an ISO and an NQ grant. The total number of shares granted cannot change. If the modification involves a change in the grant price, which in turn modifies the award value or the grant date, the modified grant information is transmitted to Variable Comp. To change the number of shares, void the grant and allocate a new award.
7. Make adjustments in Variable Comp Stock Funding, Stock Plans, and Stock Awards for stock splits and stock repricing.
Responsibility: Stock Administrator.
Some stock adjustments affect the valuation of the stock units in the Variable Comp plan, the stock price for all stock awards, or the number of shares available to allocate.
Stock splits change the number of shares available in the Variable Comp stock plan, stock funding, and awards. They also change the values in stock awards and in the valuation table. The stock split processing that occurs in the Stock Administration system, also splits the stock in any Variable Comp stock plans, stock funding, and stock awards.
When you reprice your stock, the values in stock awards and the valuation table change. You need to recalculate the value in stock awards and also in the valuation table.
8. Expire Variable Comp plans.
Responsibility: Stock Administrator.
A Variable Comp funding period expires when the period end date is reached. Run the Stock - VC Plan Expire process regularly to process the expired funding periods. Unused shares are returned to the Stock Plan from where they were originally allocated.
Related Links
"Understanding Variable Compensation Funding" (PeopleSoft HCM 9.2: Human Resources Manage Variable Compensation)
Understanding Grant Administration Managing Stock Splits
Understanding Reprice Administration
Variable Compensation Integration
Stock Administration uses two integration points to grant and award variable compensation grants.
The system uses the following service operations to transfer award and grant data between Stock Administration and the Variable Compensation business process.
Integration Point Name Message Name Message Definition
Award Data AWARD_GRANT_ISSUE VC publishes award data to Stock
Administration and Stock Administration subscribes to the award data.
Grant Data GRANT_AWARD_UPDATE Stock Administration publishes grant
data to VC and VC subscribes to the grant data.
In PeopleTools Application Designer you must activate the AWARD_GRANT_ISSUE and
GRANT_AWARD_UPDATE messages. Make sure that you set the status of each selected message to Active, and set the status of the corresponding queue to Run.
Third-Party Stock Administration Subscription to Integration Point Messages
Through the use of web server extension mechanisms such as Java servlets, a third-party application can accept and process an XML post from a PeopleSoft message. Third-party applications can publish data to the PeopleSoft database by means of an XML data post directly to PeopleSoft's Integration Broker Gateway.Allocating Stock to the Variable Comp Stock Fund
To allocate stock to the variable compensation stock fund, use the Variable Comp Allocation (ST_VC_ALLOC) component.
This topic describes how to allocate stock units from your stock option plans to the variable compensation stock fund.
You can also allocate stock units for future fund allocations. Stock balances are adjusted when grants are generated, not when the stock units are allocated.
Chapter 8 Administering Variable Compensation Grants
Pages Used to Allocate Stock to the Variable Compensation Stock Fund
Page Name Definition Name Usage
Variable Comp Allocation Page ST_VC_ALLOC Allocate stock to the Variable Comp stock fund.
Stock VC Allocation Details Page ST_VC_PLAN_SEC Add comments about a stock allocation by clicking the Details button on the Variable Comp Allocation page.
Variable Comp Allocation Page
Use the Variable Comp Allocation page (ST_VC_ALLOC) to allocate stock to the Variable Comp stock fund.
Navigation
Set Up HCM > Product Related > Stock > Option Plans > Variable Comp Allocation Image: Variable Comp Allocation page
This example illustrates the Variable Comp Allocation page.
Sequence If you have multiple allocations in a single day, the sequence number differentiates the transactions.
Shares Allocated You can allocate more shares than are currently in the plan if you anticipate future funding.
Approval Date Enter the date management approved the allocation.
Details Click to access the Stock VC Allocation Details page where you can add comments. You can also view the date and time of the last change and the EmplID of the person who made the last change.
Viewing Unprocessed Variable Comp Stock Awards
This topic discusses how to view unprocessed Variable Comp Stock awards after they've been published to Stock Administration.
Page Used to View Unprocessed Variable Comp Stock Awards
Page Name Definition Name Usage
Unprocessed Variable Comp Stock
Awards Page VC_ST_AWARD View unprocessed Variable Comp
awards after they have been published to Stock Administration.
Generating Grants for Variable Compensation Awards
To generate grants for variable compensation awards, use the Create VC Grants (ST_RUNCTL_GEN_GRNT) component. This topic discusses how to generate grants.
Pages Used to Generate Grants
Page Name Definition Name Usage
Create VC Grants - VC Criteria Page ST_RUNCTL_GEN_GRNT Define the basic parameters of the grant generation process including the VC plan ID. Enter the VC plan, payout period, and group ID, for any unprocessed awards you want to generate. You must first award grants to the optionees through variable compensation.
Create VC Grants - Optionees Page ST_GEN_OPTIONEES Exclude individuals from the grant generation processing. You can also view awards to be processed based on the criteria entered on the VC Criteria page.
Create VC Grants - Grant Page ST_GEN_GRANT Enter the grant details that are required to generate the grants. During the process the vesting routine is used and the ISO validation occurs if the grant is ISO/SAR.
Variable Comp Message Report Page ST_RUNCTL_STOPMSG Define run parameters for the Variable Comp Message report (STOPMSG).
The report displays processing messages when variable compensation grants are generated.
Related Links
Validation of ISO LimitsCreate VC Grants - VC Criteria Page
Use the Create VC Grants - VC Criteria page (ST_RUNCTL_GEN_GRNT) to define the basic parameters of the grant generation process including the VC plan ID.
Chapter 8 Administering Variable Compensation Grants
Enter the VC plan, payout period, and group ID, for any unprocessed awards you want to generate. You must first award grants to the optionees through variable compensation.
Navigation
Stock > Grants > Create VC Grants > VC Criteria
Group ID If you use groups, this field is available. Select a group ID or leave the field blank to process all groups.
Reject Award Data for Plan ID Select to reject all VC grants. If you entered a group ID, the system rejects all grants in the group ID.
Important! If you reject VC grants, you cannot recalculate them on the VC side for the same period. You will have to calculate new awards in the following period.
Create VC Grants - Optionees Page
Use the Create VC Grants - Optionees page (ST_GEN_OPTIONEES) to exclude individuals from the grant generation processing.
You can also view awards to be processed based on the criteria entered on the VC Criteria page.
Navigation
Stock > Grants > Create VC Grants > Optionees
Process If selected, the award is processed. To exclude the award from processing, deselect the check box.
Group ID Displays the group ID, or NOGROUP if the VC plan is ad-hoc.
Create VC Grants - Grant Page
Use the Create VC Grants - Grant page (ST_GEN_GRANT) to enter the grant details that are required to generate the grants.
During the process the vesting routine is used and the ISO validation occurs if the grant is ISO/SAR.
Navigation
Stock > Grants > Create VC Grants > Grant
Period ID The payout period ID.
Running the Stock - VC Plan Expire Process
When the Variable Comp plans or funding periods expire, return the shares back to the stock plan.
The process checks the expiration of the Variable Comp plans. If any plans are expired, the system inserts a row into the Variable Comp Funding page to decrease the balance to zero.
Page Used to Run the Stock - VC Plan Expire Process
Page Name Definition Name Usage
Expire Variable Comp Plans Page PRCSRUNCNTL Expire Variable Comp plans.
Chapter 9
Administering Grants
Understanding Grant Administration
This section provides an overview of grant administration and lists prerequisites and common elements.
Once you establish your stock option plans and allocate funds to them, you're ready to grant stock options to your optionees.
You can grant stock options to your participants in three ways:
• Process grants awarded through your variable compensation plan.
• Award grants from an individual stock option plan through an online transaction.
• Replace an existing grant with a new grant during a reprice.
By using variable compensation, much of the process is automated. But you can still make adjustments and grant individual grants as necessary.
Related Links
Understanding Variable Compensation
Prerequisites
Before you begin granting stock options, you should:
• Create the vesting schedules.
• Set up your stock option plans.
• Create your grant reasons.
• Set up agreements.
• Set up the default tax tables.
• Add insider data.
• Add issuance instructions.
• Enter daily prices.
• Allocate shares to the stock option plan and variable compensation plan.
• Receive variable compensation awards.
Common Elements Used to Administer Grants
Agreement ID Select a grant agreement to use for this grant. If you selected a Parameter ID its agreement ID is the default. You can select another from the available options.
Employee Information This group box displays employee information as of the grant date.
Exercise Before Vest If the option plan allows exercise before vesting, you can select this check box. If the option type is RSA this check box is selected.
Expire Basis Displays the value that is associated with the option parameter ID. You can select Grant Date, Grant Date - 1, Vest Date, or Vest Date - 1 to indicate the date used to calculate the start of the option life months.
Grant Date Defaults to the payout period's end date associated with the payout period ID or the VC plan ID. You can change it, but the date must be between the payout period's begin date and the end date.
Grant FMV Displays the Grant FMV calculated based on the Daily Prices table and defined using the Stock Option Plan Rules - FMV Rules page.
Grant Number Displays NEW when you enter a grant. When you save, the system generates a sequential grant number from the last grant number stored on the Stock table.
Grant Price The system default is the Grant FMV (fair market value) calculated based on the Daily Prices table and defined in the Stock Option Plan Rules - FMV Rules page. You can change this amount.
If the option type is ISO, the grant price cannot be less than the FMV on the grant date.
If the optionee is a 10% shareholder, the grant price of an ISO/
ISAR grant has to be at least the Grant FMV multiplied by the 10% shareholder FMV rule on the governing body rules table.
Grant Status Valid values are Active, Void, and Pending.
Life - Months Displays the value associated with the option parameter ID, which you can change. Enter the number of months that the option remains outstanding.
If the option type is ISO or ISO/SAR, the maximum life months is defined on the Governing Body Rules table. The value in this field cannot exceed the number in the Governing Body Rules table.