Understanding Administering Repurchases
This section lists prerequisites and common elements and provides an overview of repurchase administration.
Before you begin a stock repurchase, you must have:
Granted options to an optionee.
Exercised unvested shares that have not been released.
Field or Control |
Description |
|---|---|
EmplID |
Click the EmplID number to access the Employee Information page, where you can view employee information. |
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 repurchase administration pages 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.