Exercise options (NSO) on Carta using ACH
If your company's bank account is set up on Carta, you are able to electronically exercise your NSO grant using ACH. Find the option grant you would like to work with and click 'Exercise.
NOTE: only US companies and employees can use the ACH exercise workflow
If this is your first time exercising your grant, you will need to go to ' Account' > 'settings' page > "payment information" tab. You will only have to do this once.
1. Enter your account in the "Payment information" page under 'Account'. Learn more on adding your bank account here.
It will take about 2-3 business days for account verification. You will see two small deposits in your bank account. You will need to enter these on Carta to verify your account.
2. Once your account is verified, go back to your portfolio and click 'Exercise.' This will pull up the modal to start the exercise process.
3. Enter number of options and answer, and then answer the question, "Were you a Company employee living in the U.S. between grant date and the date the shares became vested?"
- If "yes," select the state and city to estimate tax withholding. The amount shown is the maximum amount allowed by the federal and state laws. The company approver can adjust them according to your liability before approval. Please note, the withholding amount is not remitted to IRS by Carta. After Carta collects the withholding amount and deposits it with the total exercise amount into the company's bank account, the company is responsible for remitting the taxes to IRS.
The tax withholding fields are interactive, and the amounts are calculated for you based on the rates above once the number of shares are entered:
4. Next, check the box to agree to the withdrawal amount. Then click 'Sign and exercise.'
5. Type your name to sign after reviewing the attached equity incentive plan, the option agreement, and most importantly, the exercise agreement.
Once your exercise is approved, the funds will be withdrawn from your bank account and in 5-7business days you will be issued a certificate.In your portfolio, you will see the "Exercise pending" note for 5-7 business days.
By signing the associated Form of Option Agreement, Form of Exercise Agreement and any other company-required documents, and authorizing the company to withdraw the required funds for the exercise, the option holder is irrevocably committing to exercising the option. It is not possible to cancel the exercise after submission.
Once the exercise is complete, the resulting certificate will be created and sent to the company officer to be signed, then to you for your acceptance. Navigate back to the grant and click 'Exercise status' to view the status of your exercise.
You can view the exercise details: