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Granting hurdle shares
Granting hurdle shares

This article explains how to create a share class for Hurdle Shares and how to then issue Hurdle Shares to stakeholders

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Written by Support Team
Updated over 2 years ago
  1. Go to the Ownership > Share classes

  2. Select Add share class in the top right corner

  3. In the "Create a new share class" window that will pop up you, define the share class parameters (to learn more about each of these parameters, please visit our share classes article).

    Specifically for Hurdle Shares, activate the "Hurdle" toggle (green) and insert the Hurdle share price in the field that will appear below.

    Note: if you've had any stock splits in the past, these will be taken into consideration when adding the Hurdle Price. For example, if you've had a stock split with a factor of 100, and you want to define a Hurdle Share Price of GBP 10, you'll need to insert 1'000 GBP in this field so that taking into account the stock split, your effective hurdle share price will be GBP 10.

4. Go to Equity Plans > Pools & Plans

  • Add a new Pool for the hurdle shares (each pool requires a unique share class).

  • Ensure that the underlying Share Class is assigned to the Hurdle Shares (as created in the previous step).

  • Once the Pool has been created, add a new Plan for the ability to grant new hurdle shares and fill in the fields for Plan name, Date, Grant type, and also allocate it to the Hurdle Shares Pool.

Note: When generating a new plan, if 'Hurdle Shares (UK)' is selected as the Grant Type but without the underlying share class having hurdle shares toggled, you will receive a warning message from Ledgy.

5. To issue hurdle shares to a stakeholder, go to Equity Plans > Grants

6. Select Add grant in the top right corner

7. When choosing a plan, select the Hurdle Shares plan created in the previous steps, enter the number of grants, the grant date and which stakeholder you want to issue them to. You can further customize any Optional fields as necessary in the toggle arrows below.


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