Stock-Type Variable Compensation Plans
Stock-type variable compensation (VC) plans require setup of valuation and funding. Use goals and other optional plan rules. The system uses valuation only for variable compensation reporting purposes because stock prices can change so rapidly.
The variable compensation system provides five stock plan types for your organization's tracking purposes. Within the Variable Compensation business process, the system treats them all the same. Select one of these stock plan types:
| Term | Definition |
|---|---|
|
Stock ISO |
Incentive Stock Option |
|
Stock NQ |
Nonqualified Stock Option |
|
Stock NSAR |
Stock Appreciation Rights in tandem with a Nonqualified Stock Option |
|
Stock RSA |
Restricted Stock Award |
|
Stock ISAR |
Stock Appreciation Rights in tandem with an Incentive Stock Option |
Stock-type variable compensation plans are supported only for users of PeopleSoft Stock Administration. The system provides specific functionality to support this integration.
Summary of Setting Up Stock-Type Plans
To set up stock-type plans:
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Define valuation of stock units on the Valuations page.
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Specify a stock ID and stock plan on the Plan Definition page.
The Stock administrator sets up stock IDs on the stock plans on the Stock Plan Table page.
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Specify a valuation ID on the Plan Definition page.
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Set up plan funding on the Plan Funding page.