Processing Life Events 
Use
Many awards have vesting schedules that change as a result of a pre-defined life event occurring. For example, unvested shares vest immediately, all or a portion of the shares become immediately exercisable, etc.
Prerequisites
Options must have been granted to the employees.
Life events have been defined
Life event vesting has been set up
Procedure
On the Compensation Management screen, choose Administration ®
Long-term incentives ®
Life events
The Life Events for Long Term Incentives screen appears.
Enter the date on which the life event occurred
Enter the event type
If you select an employee event, you must also enter the employee's personnel number
Choose Continue.
If you selected an employee event, the system displays the following information:
- Name of employee
- Award
- Grant date
- Number of shares granted
- The effect that the life event has had on the vesting schedule of the award
- If a new vesting rule takes effect, then the system displays the new term of the award as of the date of the life event and the original term of the award
- If you selected a corporate event, the system lists all the employees that have been granted awards that are affected by this particular life event, together with the following information:
- Grant date
- Number of shares granted
- The effect that the life event has had on the vesting schedule of the award
- If a new vesting rule takes effect, then the system displays the new term of the award as of the date of the life event and the original term of the award
- Choose Save.
Result
If the life event results in the awards being forfeited, then the system forfeits the awards and subtracts the number of shares forfeited from the total number of shares distributed in the long-term incentive plan.
If the life event changed the vesting schedule, then the new vesting rules take effect as of the life event date.
See also:
Life Events