Effective Dates for Post-Termination Exercise Period (PTEP)
Post-termination exercise period (PTEP) refers to the amount of time an option holder has after termination to exercise their options. It is now possible to change the PTEP to give employees more or less time to exercise. This can happen on a one-off basis, or across many grants at once.
What is new with this release?
It is now possible to enter an effective date for the post-termination exercise period in Carta. This is needed to track changes over time and to have more accurate financial reporting.
Modifying the PTEP
The PTEP can be modified for a specific grant by selecting ‘Modify post-termination period’.
The original grant and the current PTEP values are visible on the left side of the ‘Modify port-termination exercise period screen’.
Select ‘Add Modification’, then enter an effective date for this change, select a modification reason, select the new modification details, then select ‘Save this modification’.
It is also possible to update the PTEP across multiple grants at once.
More information is available in this support article.
Note: Changing the post-termination exercise periods can have tax and accounting consequences and may need board approval, so consult your legal administrators before making any changes.