Manage Stock Options

The tables on this page list the tasks for this business process, grouped by role. Some roles may be listed more than once if their tasks are performed at different points in the process. Follow the task numbers in order, unless the Task Description column provides instructions to go to a different task number. Click links in the Task Description column to view detailed diagrams for those tasks or to go to the online help for those pages.

Line Manager

Task Number	Task Description
1	Award Performance Incentives. Go to task number 9.

Stock Administrator

Task Number	Task Description
2	Receive information about dispositions from optionees, transfer agents or brokers. If Method to process dispositions is Automated, Go to task number 45. If Method to process dispositions is Manual, Go to task number 3.
3	Review summary or exercise and release transaction information, identify disqualifying dispositions. Maintain Dispositions Release Disposition Exercise Disposition In parallel: Go to task number 4, Go to task number 6.
4	Provide report of all W-2 income generated from disqualifying dispositions not reported through PeopleSoft Payroll for North America to the Payroll Administrator. ISO DD to Payroll
5	Provide report of all voided disqualifying dispositions for which W-2 income that was calculated was sent to payroll. ISO DD to Payroll Reversals Go to task number 48.
6	Integration (AE) with PeopleSoft Payroll for North America Provide ordinary income for disqualifying dispositions for inclusion on W-2. End of activity.
7	Track Daily Stock Prices and Calculate Balances. If Decide if need to administer is Grants, Go to task number 8. If Decide if need to administer is Verify Stock Plan Participation, Go to task number 55. If Decide if need to administer is Option Repurchase, Go to task number 57. If Decide if need to administer is Option Reprice, Go to task number 63. If Decide if need to administer is Stock Actions Resulting from Employee Status Changes, Go to task number 73. If Decide if need to administer is FAS 123 Compliance, Go to task number 79.
8	Determine if Decide if creating grants using. If Decide if creating grants using is Variable Compensation, Go to task number 9. If Decide if creating grants using is Manually, Go to task number 12.
9	Receive approved VC stock awards EIP (AM): AWARD_DATA.
10	Award grants to optionees. Review Unprocessed VC Awards Create VC Grants
11	Review grant processing. Review Grant Messages Variable Comp Message Report Go to task number 14.
12	Identify general information about grant such as status, date, shares granted, reason, and price. Maintain Grants
13	Create a vesting schedule and validate ISO limits. Maintain Grants
14	Determine if Adjust grants. If Adjust grants is No, Go to task number 15. If Adjust grants is Yes, Go to task number 54.
15	Provide grant data to variable compensation plan EIP (AM): GRANT DATA. In parallel: Go to task number 16, Go to task number 51.

Optionee

Task Number	Task Description
16	Receive notification of stock option grant.
17	View stock option information. Stock Option Summary Stock Option Activity In parallel: Go to task number 18, Go to task number 19.

Task Number

Task Description

Receive notification of stock option grant.

View stock option information.

Stock Option

Summary Stock

Option Activity

In parallel: Go to task number 18, Go to task number 19.

Line Manager

Task Number	Task Description
18	Review employee stock options. Employee Stock Option Sum End of activity.

Optionee

Task Number	Task Description
19	Provide stock issuance instructions. Issuance Instructions In parallel: Go to task number 20, Go to task number 52.
20	Request to exercise options.

Task Number

Task Description

Provide stock issuance instructions.

Issuance Instructions

In parallel: Go to task number 20, Go to task number 52.

Request to exercise options.

Stock Administrator

Task Number	Task Description
21	Verify that the grants to exercise are active and not pending. Exercise Options Exercises-Hidden
22	Verify that daily prices are current. Maintain Daily Prices Daily Prices Report
23	Identify the number of shares exercised and the methods for calculating the costs and taxes due based on the exercise date. Exercise Options
24	Calculate the taxes related to the exercise manually or by utilizing integrated processes with NA Payroll. Exercise Options In parallel: Go to task number 25, Go to task number 50.
25	Calculate the total cost due to the company for the exercised shares and related taxes and record swap and trade information. Exercise Options
26	Specify how the transfer agent is to issue exercised shares and specify the legends to display on issuance instructions. Exercise Options
27	Identify certificate information, brokerage instructions, escrow information or registration and address information. Exercise Options
28	Record fees and commissions that the optionee pays to sell exercised shares. Exercise Options
29	Record payments made to the company on the exercise and view outstanding balances. Exercise Options
30	Issue the shares in a stock certificate, electronically deposit them with a stock broker, or hold in escrow until the option meets restrictions, such as vesting.
31	Create reports for the Transfer Agent and Broker. Transfer Agent Instructions Broker Deposits Broker Invoices
32	Review the future vest dates for restricted exercises to determine when restricted shares can be released. Restricted Vesting Forecast If Stock options restricted and to be released when vested is No, Go to task number 33. If Stock options restricted and to be released when vested is Yes, Go to task number 34.
33	Provide options exercise receipts. Exercise Receipts Go to task number 43.
34	View the existing release transactions for the grant and identify/update basic parameters of a release of restricted shares. Release Options Releases-Hidden If Optionee filed an 83(b) election at the time of exercise is Yes, Go to task number 36. If No, Go to task number 35.
35	Calculate the taxes related to the release manually or by utilizing integrated processes with NA Payroll. Release Options In parallel: Go to task number 36, Go to task number 49.
36	Identify tax due to the company if the optionee did not pay taxes at the time of exercise and record trade information. Release Options
37	Identify certificate information, brokerage instructions, escrow information/registration and address information. Release Options
38	Record fees and view net proceeds that the optionee receives for a Same Day Sale or Sell to Cover Release. Release Options
39	Record payments made to the company on releases and view outstanding balances. Release Options
40	Instruct the escrow agent to release restricted shares from the escrow account and return them to the transfer agent for re-issuance; instruct the transfer agent to reissue the shares released from escrow.
41	Create reports for the transfer agent. Broker Deposits Broker Invoices Transfer Agent Instructions
42	Provide release receipts. Release Receipts

Optionee

Task Number	Task Description
43	Request to sell or transfer stock.
44	Report Stock Sales.

Stock Administrator

Task Number	Task Description
45	Process dispositions in batch process. Process Dispositions-Batch Up
46	Provide a disposition reported through the self-service module to payroll. Confirm Self-Service Disposition In parallel: Go to task number 47, Go to task number 48.
47	Integration (AE) with PeopleSoft Payroll for North America Provide disposition information. End of activity.
48	Create report providing detailed information about a disqualified disposition for optionee to use with income reported on W-2 form. Disposition Receipts Go to task number 94.
49	Integration with PeopleSoft Payroll for North America. End of activity.
50	Integration with PeopleSoft Payroll for North America. End of activity.
51	Determine if Process mass updates. If Process mass updates is No, Go to task number 52. If Process mass updates is Yes, Go to task number 53.
52	Create or modify issuance and registration instructions for individual participants. Maintain Issuance Instructions End of activity.
53	Change the brokerage choice for a group of participants. Update Mass Issuance Review Mass Issuance Messages End of activity.
54	Adjust granted options. Modify Grants Go to task number 12.
55	View employee personal profile information. Review Personal Profile Add a Person Modify a Person
56	Designate individuals subject to SEC Section16 reporting and Regulation S-K proxy requirements. Maintain Insiders Go to task number 94.
57	Receive notification to reacquire shares from restricted exercises due to a termination, prior to vesting.
58	Review information on shares to eligible for repurchase. Subject to Repurchase
59	Identify the grant number in order to review repurchase transactions. Repurchase Options Repurchases-Hidden
60	Identify repurchase information including status, date, and number of shares. Repurchase Options
61	Provide payment instructions and details to Accounts Payable.
62	Create receipt for optionee. Repurchase Receipts Go to task number 94.
63	Reprice stock options. Define Stock Repricing
64	Determine participants' eligibility for repricing. Determine Eligibility
65	Print reprice Election forms and send to plan participants for their acceptance. Create Reprice Election Forms
66	Identify participants' elections to be included or excluded in the stock repricing. Participation
67	Reprice grants according to specified criteria. Process Repricing
68	Review reprice processing results. Review Reprice Messages If Errors exist that require correction is Yes, Go to task number 69. If No, Go to task number 72.
69	Review repricing messages. Review Reprice Messages
70	Reverse repricing. Reverse Repricing
71	Correct reprice errors. In parallel: Go to task number 67, Go to task number 94.
72	View stock reprice information. Repricing Report Go to task number 94.
73	Receive notification of employee HR status change, such as a termination or return from leave of absence, and need to incorporate changes with stock plan participation WORKFLOW. If Using automated process through worklist is Yes, Go to task number 74. If No, Go to task number 75.
74	Request stock action processing. Process Stock Action-Work List Go to task number 76.
75	Adjust stock actions. Process Stock Action-Manual
76	Review stock action results. Review Stock Action Messages If Action is Repurchase Stock, Go to task number 77. If Action is Create Reports, Go to task number 78. If Action is Reverse the Stock Action, Go to task number 75.
77	Perform external activity:. Stop and complete Repurchase Stock. End of activity.
78	Review, by optionee, the amount of the. $110,110 ISO limit used each year for every ISO grant and the remaining available value for each year ISO Limit Go to task number 94.
79	Identify expected dividend yield.
80	Identify risk-free interest rate.
81	Calculate weighted average expected remaining life for outstanding shares of option and derive expected term input for Black-Scholes model. Expected Life Years Analysis
82	Review historical volatility of a stock to assist in determining the expected volatility for the future. Expected Volatility Report If Review or update option groups is No, Go to task number 86. If Review or update option groups is Yes, Go to task number 83.
83	Identify the records and fields that are available to users when creating and viewing option groups. Option Group Security
84	Create option groups and define the criteria for selecting options for the option group. Define Option Group
85	Review the options that meet the selection criteria, make adjustments and/or finalize. Define Option Group
86	Specify expected rates for volatility, risk-free interest, and expected dividends for use by the Black-Scholes pricing model and update for values for current period. Estimate Table
87	Link the stock to be valued, the valuation method, and the Estimate ID that represents the volatility, interest rate, and dividend rate and the volatility type for the current period. Valuation Table
88	Specify the Stock ID, Valuation ID, and expected life years for the grants you wish to value and perform stock option valuation. Process Grant Valuation
89	Review the valuation results for a particular employee and grant. Maintain Grants Grant Valuation Report In parallel: Go to task number 90, Go to task number 89.
90	Determine if Reverse a valuation. If Reverse a valuation is No, Go to task number 92. If Reverse a valuation is Yes, Go to task number 91.
91	Specify the Stock ID, and Select the grants for which you want to reverse the valuation process. Reverse Grant Valuation
92	Identify missing valuation records for stock options. Valuation Audit Report If Reprocess is No, Go to task number 93. If Reprocess is Yes, Go to task number 88.
93	Create reports. FAS 123 Option Expense
94	Determine if Create stock option reports. If Create stock option reports is Yes, Go to task number 95. If Create stock option reports is Yes, Go to task number 96. If Create stock option reports is Yes, Go to task number 97. If Create stock option reports is Yes, Go to task number 98. If Create stock option reports is No, Go to task number 99.
95	Grant transactions. Shares Granted Shares Exercised Shares Cancelled Shares Released Shares Repurchased Go to task number 100.
96	Regulatory. Plan Summary Common Transactions Potential Diluted Disclosure Summary Outstand/Exercisable By Price Go to task number 100.
97	Stock Activity. Stock Activity Summary Stock Activity Details Go to task number 100.
98	Expense. Variable Accounting Accrual APB 25 Expense Go to task number 100.
99	Reconciliation. Income/Taxes Income/Taxes Reversals ISO DD to Acctg/Tax

Compensation Manager

Task Number	Task Description
100	Analyze Total Compensation. End of activity.

Stock Administrator

Task Number	Task Description
101	No. End of activity.