Eqvista is a very easy to use and interactive platform that allows you to easily manage and track the shares in your company. This makes it easy to issue shares to an employee in your company as you create a vesting schedule at the same time.

Not sure how to go about it? Well, here is a step by step guide to help you.

Step 1: Log into your account on Eqvista and select the company profile.

From the company’s dashboard, you will need to create the equity share class and reserve shares in this class.

To do this, click on “Securities” on the left hand side panel on the dashboard, and a drop down menu will appear. Select the option “Equity Share Class” as shown below.

Equity Share Class

Step 2: Once you do this, you will be directed to the next page as shared below.

Create New Equity

On this page, you can see all the equity share classes in the company. As you are about to issue shares to your employees, you will need to create a separate equity share class for that. For doing this, click on “Create New Security” as shown above.


Step 3: You will then be directed to the next page.

Select Equity Type

Here, you will be able to create the equity share class. Choose the type of equity of the new share class, either common or preferred shares. By clicking on the field, a drop down list will appear allowing you to choose the desired option. We selected the option “Common”.


Step 4: As soon as you select the option “common”, a drop down page will appear:

Create Equity Class

On this page, you will need to name the equity class, and the number of shares to be reserved in the class. Once you have filled in the details for this, you need to mention the date the security was created and the board approval date. After adding all the information, click on “Submit”.


Step 5: By clicking on “Submit”, you will be directed to the next page where the equity class is formed and you can then begin the process of issuing the shares to the employees in your company.

Issue Shares

On this page, you will find all the information about the equity share class that you just created. From here, click on “Issue Shares”.


Step 6: You will be directed to a page where you can begin the process of issuing the shares. Select the equity share class from the drop down list on the field to add the share class name. 

Select Equity Type

We selected “ESOP” as we created this equity class just for issuing the shares to the employees.


Step 7: Once you click ESOP, another option will show up to add a shareholder.

ESOP

Step 8: After you do this, a drop down page will appear. Here, select the name of the shareholder. If you have not yet added the profile of your employee as a shareholder, you can add them from here. In this case, you will not find their names on the list. So, select the option “Create new shareholder”.

Create New Shareholder

Step 9: Once you select the option to “Create new shareholder”, the drop down window will change allowing you to add in a new shareholder profile, as shown below. 

Note: You can also add a shareholder from the “Shareholder” option on the dashboard. To know more about this process, click here.

Shareholder

Here, you will need to add in the details of the employee like the email ID, first name, last name, the date of issuance of shares, the number of shares issued, the price of the share at the moment of issuance, and the share certificate number.

Once you have added in all the details, you will need to add the vesting schedule to these issued shares. The option will ask you if there is a “Vesting Schedule” or not. 

In this case, we will choose the option “Yes”.


Step 10: As soon as you choose the option “Yes”, another option appears, as below: 

Vesting Plan

The option lets you choose the vesting plan that you want to add for the employee. When you click on the field to add the vesting plan, a drop down list appears. In this case, there isn’t any vesting plan created as of yet. Hence, we can choose the option to “Create vesting plan”.


Step 11: The moment you select the option “Create Vesting Plan” from the list, you will be directed to another page as shared below.

Vesting Plan Schedule

Here, you will need to add the name of the vesting plan. For instance, we used the name “General Plan” since we want to use the same plan for many employees. 

The next thing you will have to add in is the vesting period. Usually, the vesting period is for at least 3 years (which is 48 months). After this, fill in the details of the Cliff, (the length of time before the first part of the shares are awarded to the shareholder). In this case, we added it as 12 months.

The last detail that you need to add is the “After Cliff” value. This is the time intervals of when the next percentage of shares are awarded. In this case, we added the value 1, for vesting every month.

Once you have filled in all the details, click on “Submit Vesting Plan”.


Step 12: As soon as you do this, you will be taken back to the page where you were issuing the shares to the employee and choosing the vesting plan. The page would appear as shown below.

Vesting Plan

Here, you can now select the vesting plan based on what you just created. In this case, we selected the option “General Plan”. And in addition to these options, there are two more options one is the vesting start date, and the next is the vesting restriction. 

To make things easier, we selected the option where there is no restriction. 

To know more about what will happen if you select the RSU or RSA option, check out the support article here.

After adding all the details, click on “Submit”.


Step 13: With this, you will be directed back to the equity share page as shown below.

Equity Share

As seen in the image above, the shares have been issued to the employee as needed. You will also be able to see the vesting period in the table. Just like this, you can easily issue shares to the other employees in your company without any restrictions.

If you want to know more or understand any other process, check out the other support articles here or contact us today!

Interested in issuing & managing shares?

If you want to start issuing and managing shares, Try out our Eqvista App, it is free and all online!