Pausing a Vesting Schedule

The most common reason a vesting schedule would need to be paused is due to a Leave of Absence. To pause a vesting schedule on a certificate, equity award, or warrant, the user will need to have "Legal Administrator" permissions.

1. After logging into Carta, go to the Securities > Equity Awards page. These steps are specific for option grants, but can be replicated for other security types.

2. Search for the desired option grant, click the grey "v" button to the right of the grant's row, and select "modify vesting schedule".

3. Next, create a custom vesting schedule by importing a standard schedule, or copying and pasting from Excel.

4. Commonly, since the vesting schedule would be paused for a few months, the method of importing a standard schedule is used more. Enter a vesting schedule name and confirm the vesting type and start date. 

5. For the periods where vesting is paused, zero out the number of options to vest. For example, the holder of option grant ES-13 will be on a leave of absence from Nov. 1 to Jan. 1, so period #5 through #7 will display 0 options to vest. Then those three periods will be added to the bottom of the vesting schedule so that the cumulative total is 100%.

6. Click "next: add modification reason". Add a brief description of the modification, which will be sent to the option holder if the option grant has been accepted, and click "next: review modifications". Lastly, scroll to the bottom to "save vesting schedule".

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