Reflecting Hybrid Date-Milestone Vesting on Carta
The best way to reflect hybrid vesting schedules at this time on Carta is by creating two separate grants with each of the vesting schedules attached.
Generally, we see companies create version 1 and version 2 of the grants. By creating two separate grants, you can ensure that the correct schedule is attached to the correct quantities. The historical data also remains intact.
Note: This example uses "tagg1" and "tagg2" under the following vesting schedule:
1,000 options granted with 50% vesting upon completion of meeting quotas and the rest to vest over 3 years once milestones are complete.
1. Navigate to 'Equity Awards' under Securities.
2. Click on 'Draft options.'
3. Click on the new option grant that has been created called "No name." Then click 'Vesting Schedule.'
4. Select 'Create custom schedule' in the drop-down menu.
5. In the popup, click 'Milestone Vesting,' then click 'Save vesting schedule.'
Be sure to set the amount for the grant for half of the total shares.
6. For the second grant - you will also make it for half the amount of shares and then apply the correct monthly vesting schedule.
If the vesting does not start until a future date when milestones are met, then set this Vesting start date far into the future. Generally, the day of the grant expiration works best so you can ensure that the vesting will not start prematurely. If there is a pre-determined vesting start date, enter that date.
7. Once you have drafted both grants, you will have two versions ready to send to the company signatory.
8. Once Ross Jones's milestone has fully vested, modify by clicking on the option grant and modifying the vesting schedule to set the correct start date (if needed):