Administrators can now record public company net exercise transactions

Net exercises can now be entered as off platform transactions for public companies. This functionality leverages Carta’s tax calculations to determine the shares to withhold for option cost and taxes, as well as the net shares that the stakeholder receives from the transaction.


Who this affects:

Public company administrators


Navigate to Securities > Equity awards. To the right of the option grant’s row, click the V drop down and Select Off System Transaction. Select Net Exercise as the Exercise Type:

Enter the transaction date and shares to be net exercised:

Carta will then use the stakeholder’s address(es), relationship history, and year to date compensation information to calculate taxes and the number of shares to withhold to cover the total cost of the exercise


Administrators can review and adjust taxes related to the exercise after Carta initially calculates them. Changes to tax amounts will update the quantity of shares withheld to cover option cost and taxes.

After reviewing and saving,  the transaction will appear on reports as a net exercise. Both the exercise details and exercised and settled reports will reflect the shares withheld for taxes and net shares that the stakeholder receives.


Resources:

[Support Article] Record Net Exercise Transactions- Public Company Admins