PeopleSoft Enterprise Stock Administration 9.1 PeopleBook

Administering Repurchases

This chapter provides an overview of administering repurchases and discusses how to view and record share repurchases.

Understanding Administering Repurchases

This section lists prerequisites and common elements and provides an overview of repurchase administration.

Prerequisites

Before you begin a stock repurchase, you must have:

Granted options to an optionee.
Exercised unvested shares that have not been released.

Common Elements in This Chapter

EmplID

Click the EmplID number to access the Employee Information page, where you can view employee information.

Repurchase Administration

If your stock option plans allow the reacquisition of shares from restricted exercises, you can accurately record the repurchase transactions and send the transaction information to optionees, escrow agents, and transfer agents. Typically, repurchases occur due to a termination before vesting.

How you handle share repurchases depends on the stock option plan rules that you set up using the Stock Option Plan Rules component. Typically, you repurchase unvested shares, such as those that remain in escrow when an optionee terminates, but you can also repurchase vested shares. You can return the repurchased shares to the stock plan from where they were granted or retire the shares to the treasury.

Use the pages described in this chapter to record repurchase information, such as the repurchase date, the numbers of shares repurchased, and the repurchase price. Use this information to generate reports, statements, and transmittals. To repurchase the shares at different prices, you enter a separate repurchase transaction for each price.

Finally, you can generate the following necessary statements and transmittals:

Repurchase Receipt: Given to the optionee stating that the company has repurchased the shares.
Agent Issuance Instructions: Sent to the transfer and escrow agents so that they can process the stock transaction and record the cancellation of the shares.

Viewing and Recording Share Repurchases

This section discusses how to:

Select a grant for recording repurchase transactions.
Record repurchase transactions.
View repurchase transactions.

Four reports are particularly useful for share repurchases:

Options Repurchase Receipts report (STOP011)
Option Shares Repurchased report (STOP006)
Options Transfer Agent Instruction Repurchase report (STOP016)
Subject to Repurchase report (STOP008)

Pages Used to View and Record Share Repurchases

Page Name	Definition Name	Navigation	Usage
Grant Transactions	ST_REPURCH_SRCH1	Stock, Grant Transactions, Repurchase Options	Select the grant for which you want to view or record repurchase transactions.
Repurchase Transactions	ST_REPURCH_SRCH2	Click a grant number on the Repurchase Options - Select Grant page.	View repurchase transactions and access the Repurchase Options page.
Repurchase Options	ST_GRANT_REPURCH	Click a repurchase number or the Add a Repurchase button on the Repurchase Transactions page.	Record repurchase transactions.
Grant Repurchase Comments	ST_REPURCH_CMT_SEC	Click the Comments link on the Repurchases page.	Enter comments for a repurchase.

Selecting a Grant for Recording Repurchase Transactions

Access the Repurchase Options - Select Grant page (Stock, Grant Transactions, Repurchase Options).

Grant Number

Click to access the Repurchase Transactions page, where you can view the existing repurchase transactions for the grant and access the Stock Option Repurchases page to record a repurchase.

Viewing Repurchase Transactions

Access the Repurchase Transactions page (click a grant number on the Repurchase Options - Select Grant page).

Shares Repurchasable	Displays the number of shares available for repurchase as of the current date.
Repurchase Number	Click the repurchase number to access the Repurchases page, which displays the details of the repurchase.
Add a Repurchase	Click to access the Repurchases page, where you can add a new repurchase.

Recording Repurchase Transactions

Access the Repurchase Options page (click a repurchase number or the Add a Repurchase button on the Repurchase Transactions page).

To record a repurchase transaction:

Access the Repurchase Grant Transactions page for a selected employee ID and stock ID.
Click the grant number to access the Repurchase Transactions page.
Click the Add a Repurchase button to access the Repurchases page.
Record the details of the repurchase.

Employee Information

The displayed information is as of the repurchase date.

Person Type	Displays the person type, if the optionee is a nonemployee.
Insider	Displays the insider status, if the optionee is an insider.
Pay Group	Displays the pay group of the primary job.
Tax Location Code	Displays the tax location of the primary job.

Remaining Shares

Repurchasable

Displays the maximum number of shares that are available for repurchase as of the repurchase date. These are derived from the number of restricted exercised options not released from escrow that have not yet been repurchased, canceled, or expired.

Repurchase Information

Repurchase Number	Displays NEW when you enter a repurchase. When you save, the system generates a sequential repurchase number from the last repurchase number stored in the Stock Table.
Repurchase Status	Select a repurchase status: Active (default) or Void.
Status Date	Displays the date when the repurchase status changed.
Repurchase Date	As you change this date, the Shares Repurchasable amount might change. If you enter a date that exceeds the Days to Repurchase field on the Stock Option Plan Rules - General page, the system displays a warning.
Shares Repurchased	Enter the number of shares to be repurchased. The Shares Repurchasable amount is the default.
Repurchase Price	The system calculates the default repurchase price based on the share cost method defined on the Stock Option Plan Rules - General page. You can change this value to repurchase shares at a different price.
Repurchase FMV	Displays the calculated FMV based on the rule defined on the Stock Option Plan Rules - FMV Rules page.
Repurchase Cost	Displays the total repurchase cost, calculated by multiplying the number of shares that are repurchased by the repurchase price.
Repurchase Reason	Select Terminatn (termination), Corporate, or Other.
Receipt Date	Displays the date on which the repurchase receipt was generated.
Comments	Click to access the Grant Repurchase Comments page, where you add comments about the repurchase.

Agent Notification

Legend ID	Select a legend ID to include with the repurchase issuance instructions.
Transfer Control Number, Escrow Control Number, and Transfer Issue Date	These fields are populated after you run the Agent Issuance Instruction report. They display the control numbers of the issuance instructions that were sent to the transfer agent and the escrow agent, and the date on which the transfer issuance instructions were generated.