Understanding Stock Actions

Before you begin processing stock actions:

• Set up the Stock Action Table using the Stock Action Table page.

• Define the correlation between HR action and action reason combinations using the Stock Action Reason Table page.

• Define the rules by which existing grants and vesting schedules are modified using the Stock Action Rules page.

When your optionees' human resources status changes, their stock plan participation is often affected. Using the stock action rules you've defined, you automatically receive notification from HR about relevant changes, such as a termination or return from leave of absence.

The Stock Action Table defines all unique stock actions that integrate with HR. The effective-dated table describes each stock action and type. The Stock Action Reason Table defines the correlation between HR action and action reason combinations and a stock action. The Stock Action Rules Table defines the rules that modify existing grants and vesting schedules for terminations, leaves of absence, or returns from leave stock action.

You receive a workflow from HR when:

• The individual is labeled Employee, Non Employee - Stock, Non Employee - Non administered HR employee.

• The action and action reason of a new action or a correction corresponds to a stock action in the Stock Action Reason table.

• The individual has at least one active or pending grant.

• The change is to the HR JOB.

After you receive the worklist notification, review the worklist to determine what must be done. You might want to check with HR to make sure the job change is still valid before you process the stock action. The system automatically changes existing grants and vesting schedules based on the rules defined in the stock action rules table. After you've processed the stock action, the worklist for the individual is marked Worked and is no longer available. If you must make adjustments, use the manual entry page. You can reverse the processing or adjust the grant information.