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Equity plans: Pools vs Plans
Equity plans: Pools vs Plans

What is the difference between pools and plans and how to use each one?

Support Team avatar
Written by Support Team
Updated over 2 years ago

Pools:

Amount of capital allocated for equity grants. The Pools (Equity Plans > Pools & Plans) are where you can see the overview of the pool size, how many grants you can still grant, how many were exercised in total, etc.



Plans:

A subcategory of a pool that allows you to separate the grants, for example, by:

  • Grant type (option, warrant, phantom...)

  • Country (virtual shares for German employees, warrants for Swedish, etc.)

Plans don't have a defined allocated amount. They draw from the pool they are connected to. Thus, when a grant is terminated, the amount is returned to the original pool rather than the plan.

Toggle between the Pool and Plan view to be able to drill down on the different levels of detail for the equity plans set up.


Workflow when importing your equity plan to Ledgy

1. Add a pool

Go to Equity plans > Pools & Plans, and click the "Add Pool" button in the top right corner.

2. Allocate the amount of capital to the pool (as defined in the Investment Agreement, for example)

This is the total amount allocated to future grants.

3. Create plans

  • Go to Equity plans > Pools & Plans and click the "Add Plan" button in the top right corner.

  • Select the type of instrument to be granted: option, phantom, warrant, stock.

  • Create presets for easier workflow and automation.


An example of a setup

An international company has a total pool size of 74054, and is named "Employee pool".

The company is present in 3 countries with different employee award jurisdictions, so they need 3 plans: 1 in the UK, 1 in Sweden, and 1 in Germany.

  • Plan 1: UK Option plan

  • Plan 2: SE Warrant plan

  • Plan 3: DACH Phantom share plan

They create 1 pool, which defines the total capital reserved for equity awards, and then create 3 separate plans.

Pools tab

When the Pools tab is toggled, we can see the overview of how big the pool is, how much has been granted, etc.

Plans tab

When the Plans tab is toggled, we can see how much we granted in each individual plan, and track jurisdiction-specific data points seamlessly.

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