Based on historical information, you may plug in the appropriate metrics necessary
to calculate the cancellation rate using your own means or choose from supplied
cancellation types.
To calculate Cancellation Rate:
1. Award Type Filter Selection: This filter allows you to generate a
Cancellation Rate for one or multiple option-type awards. The choices are
NQ, ISO, SAR, RSA and RSU. The default checked selection is NQ and ISO.
Checking the Award Type allows you to customize the Cancellation rate for
one or a combination of award types.
2. Define the historical look back period.
a. Enter a cancellation rate as-of date. The default is the current date.
However, the cancellation rate as-of date should be changed to the
end of the reporting period or last day of the period you are analyzing.
You may also select a cancellation rate as-of date by clicking on the
calendar icon and selecting a date from the calendar.
b. Enter over the last X years. The default is 5 years. The minimum
range for calculation is one year.
3. Select the cancellation type. The following cancellation rates are
provided.
- Pre-vest cancellation rate: Is leveraged in the expensing module when
you are calculating your actual net period.
- Post-vest cancellation rate: Are used as model inputs when Lattice
valuation techniques are deployed.
- Overall cancellation rate
4. Click the Calculate Button. The cancellation rate is calculated and
displayed to the right of the calculate button.
To save the calculations:
- Click the Save to Selection button. The cancellation rate calculation is
removed from the page and ‘moved’ to the Cancellation Rate
Parameters section at the bottom of the page. The selection also displays
the award type for which that value is applicable. Note: This information can
also be seen on the Your Selection page.
To remove saved calculations:
- Click the red Remove ‘X’. However, be aware that there is no confirmation
before it is removed.
Audit Report:
- Click the Audit Report button to generate two reports. One report details
the activity by year, and the second report details all the individual grants for the
years selected.
To create the Excluded Grant Report.
- Click the Excluded Grant Report button.
The report will display all grants that match the filtering criteria entered but
were excluded because they are assumed and/or modified grants. MPA Grants
will not show up under this report.