You can now select how equity value is displayed in the Scorecard and communicated to employees in Total Rewards in the new Equity Settings section in the General Settings page.
How to use
Navigate to Settings in the top navigation and then click on the General Settings tab on the left-side navigation.
In the Equity Settings section, there are two options:
- Equity share price - Set the value of the share price either using the Last Preferred Price or set a custom value.
- Equity value calculation - There are two options to choose from to determine how equity value is calculated:
- Net equity value - The in-the-money value of all equity grants (i.e. net of any exercise costs). RSUs assume a strike price of zero. This is the recommended setting for most situations.
- Notional equity value - This is the gross value of the equity (i.e., shares granted times the equity share price).
NOTE: When using the Net equity value option on the Bands page, Total Comp will always display the notional (face) value of equity according to your set equity share price as exercise costs are only taken into consideration for individual equity awards.
Prior to this update, all equity value was calculated only using the notional value method. We recommend customers review compensation philosophy with their teams to make the determination on the best methodology for your unique circumstances.