The offboarding process allows you to efficiently offboard grantholders using the standard rules defined in your equity plans.
As you process the offboarding flow the termination rules within the Equity Plan will be prefilled into the workflow. If you need to modify the termination rules configured in your equity plans, you can cancel or terminate each grant individually before marking an employee as offboarded.
Offboarding Employees
1. Navigate to Stakeholder management > Employees.
2. Locate the employee that will be terminated, click on the Actions Button in the far right and select Offboard stakeholder.
3. If the plan has no termination rules set, you will be prompted to edit the plan and add the Equity Plan Offboarding Rules.
4. With offboarding rules in place, add:
- Termination date
- New stakeholder
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Personal email: not a mandatory field, the personal email address is used to help the grantholder retain their Carta account after offboarding. Once you've started or scheduled this offboarding, we'll send an email to the grantholder asking them to confirm this address as their new email to log in to Carta.
6. Review the equity details and click Continue.
7. Review the grant termination details.
6. For equity awards that are exercisable, you can add custom Payment instructions.
7. Once reviewed, mark the checkbox to confirm the information is correct and click Start offboarding.
An email summary to the grantholder will be sent on the termination date, with any necessary next steps. |
Equity Plan Offboarding Rules
Specify what happens with the grants when the grantholder leaves the company. This information will be prefilled when you offboard grantholders in this plan.
The offboarding rules can be set up when creating an Equity Plan or by editing the Equity Plan.
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Securities on termination date: select which behavior applies to offboarded employees.
- Cancel unvested: as of the termination date, all the unvested portion of the equity award is cancelled, which allows you to select if the exercise window will be opened on the termination date.
- Cancel both vested and unvested: This will cancel the entirety of the grant if not previously exercised and will not allow for an exercise window to be opened.
- Exercise window: available only if the cancelation of the unvested portion is selected in the previous step. If enabled, you can set up a default exercise window and add exercise instructions.
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After the exercise window closes:
- Grantholders keep unexercised vested options.
- Unexercised vested options get canceled and returned to the pool: if any portion of the vested amount is not exercised by the end date of the exercise window, it will be cancelled and returned to the pool.