Understanding Grant Administration

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

Once you establish your stock option plans and allocate funds to them, you're ready to grant stock options to your optionees.

You can grant stock options to your participants in three ways:

• Process grants awarded through your variable compensation plan.

• Award grants from an individual stock option plan through an online transaction.

• Replace an existing grant with a new grant during a reprice.

By using variable compensation, much of the process is automated. But you can still make adjustments and grant individual grants as necessary.