Introduction
Granting equity to employees, advisors, or other stakeholders follows the same process in Ledgy regardless of the grant type. Whether you're granting stock options, phantom shares, warrants, or hurdle shares, the steps are identical.
The only difference is selecting the grant type at the plan level when you set up your equity plan. Once the plan is configured, granting equity follows the same workflow for all types.
This article explains the prerequisites for granting equity, the granting process, and how to grant equity both individually and in bulk.
Who can grant equity: You need to be an account admin in Ledgy to create and manage equity grants.
Prerequisites
Before granting equity, you need to complete two setup steps:
Step 1: Create a pool
A pool is the amount of equity set aside for a specific purpose (such as employee equity plans or advisor grants). You must create a pool before you can create a plan.
Step 2: Create a plan
A plan defines the terms and grant type for your equity grants. When creating a plan, you select the grant type (options, phantom shares, warrants, etc.) that will be issued from that plan.
The grant type is selected at the plan level, not when creating individual grants.
Understanding grant types
Different grant types have different characteristics and tax treatments. Before selecting a grant type for your plan, understand what each type represents:
Stock options - Give the holder the right to purchase shares at a set price
Phantom shares - Cash-settled equity that mirrors share value without actual ownership
Warrants - Similar to options but typically for investors or external parties
Hurdle shares - Shares with performance-based vesting conditions
RSUs - Restricted stock units that convert to shares upon vesting
And more...
Important: The grant type you select when creating your plan determines what type of equity will be granted. Make sure you choose the appropriate grant type for your needs before creating grants.
The following video tutorial covers both of these steps in detail: How to add pools and plans
How to grant equity to a single stakeholder
Once you've created your pool and plan, you can grant equity to individual stakeholders.
Step 1: Navigate to grants
Go to Equity Plans > Grants in your Ledgy dashboard.
Alternatively go to Ownership > Transactions in your Ledgy dashboard.
Step 2: Add a new grant
Click the Add grant button in the top right corner.
Step 3: Fill in required fields
Stakeholder
Select the stakeholder receiving the grant
You can also create a new stakeholder by typing their name
Plan
Select the plan from which this grant will be issued
The grant type is automatically determined by the plan you select
Number of shares/options
Enter the quantity being granted
Grant date
The date when the grant is issued
Step 4: Add optional information
Click to expand additional sections and add:
Prices (optional)
Strike price - For options/warrants: the exercise price per share
Purchase price - If the stakeholder pays to acquire the grant
Currency - If different from your company's base currency
Vesting (optional)
Add a vesting schedule
Select vesting type: Time (simple), Time (custom), or Performance
Configure vesting duration, cliff, and interval
Document templating and signature workflow (optional)
Automatically generate grant documents from templates
Prepare signature requests for grant agreements
Documents (optional)
Attach files related to the grant (grant agreements, board resolutions)
Stakeholder beneficiary (optional)
If granting to a legal entity, specify the beneficial owner
Internal note (optional)
Add notes for your internal records
Step 5: Save the grant
Click Save to create the grant.
The grant is created as a draft transaction. You'll need to publish it to finalize it in your cap table.
Step 6: Publish the grant
Draft grants don't appear in your cap table until published.
To publish:
Find the grant in Ownership > Transactions
Click the three dots next to the grant
Select Publish
Alternatively, you can publish multiple grants at once by selecting them and clicking Publish in the bulk actions menu.
How to grant equity in bulk
For granting equity to multiple stakeholders at once, use Ledgy's bulk import feature.
Step 1: Navigate to transactions
Go to Ownership > Transactions in your Ledgy dashboard.
Step 2: Access the import feature
Click the Import button at the top, then select the "Option, Phantom, or Warrant" template.
Step 3: Download the Excel template
Click Download template to get the Excel file.
Step 4: Fill in the template
Complete the Excel template with grant details for each stakeholder:
Required columns:
Stakeholder name or identifier
Plan name
Grant date
Number of shares/options
Optional columns:
Strike price, purchase price, currency
Vesting schedule details
Beneficiary information
Any other grant-specific fields
Using plan presets: If your plan has presets configured (like a standard vesting schedule), you can leave those columns blank. The grant will automatically use the plan's preset values.
Overriding presets: To override plan presets for specific grants, simply fill in those fields in the Excel template.
Step 5: Upload and import
Save your completed Excel file
Drag and drop it into the import box in Ledgy
Click Import now
Ledgy will process the bulk grants and create draft transactions for each row.
Step 6: Review and publish
After importing:
Review the created grants in Ownership > Transactions
Verify all details are correct
Select the grants and click Publish to finalise them
Grant type-specific considerations
While the granting process is identical for all types, there are some considerations depending on your grant type:
Stock options and warrants
Require a strike price - The exercise price must be set
Exercise transactions - Stakeholders can later exercise these grants to receive shares
Expiration dates - Options and warrants typically have expiration dates
Phantom shares
Cash settlement - These are settled in cash, not actual shares
No strike price needed - Since they're not exercised, strike prices are optional
Valuation-dependent - Value is tied to your share price at settlement
Hurdle shares and performance-based grants
Performance conditions - May require specific vesting conditions
Custom vesting - Often use performance-based vesting rather than time-based
Documentation - May need additional documentation of performance criteria
RSUs (Restricted Stock Units)
No strike price - RSUs convert directly to shares upon vesting
Tax withholding - May require withholding considerations at vesting
Settlement - Can be settled in shares or cash depending on plan terms
For detailed information about each grant type, see Grant Types.
Frequently Asked Questions
Can I change the grant type after creating a grant?
No, the grant type is determined by the plan. To grant a different type of equity, you need to create a grant from a plan with that grant type. If you selected the wrong plan, delete the grant and recreate it from the correct plan.
What's the difference between a pool and a plan?
A pool is the total amount of equity set aside (e.g., 1,000,000 shares for employees). A plan is created within a pool and defines the grant type and terms (e.g., "Employee Stock Option Plan" with 4-year vesting). One pool can have multiple plans.
Do I need to create separate plans for each grant type?
Yes, each grant type requires its own plan. If you want to grant both stock options and phantom shares, you need one plan for options and another for phantom shares (both can draw from the same pool or different pools).
Can I grant equity before creating a pool and plan?
No, pools and plans are prerequisites for granting. The pool provides the equity source, and the plan defines the grant type and terms. You must set these up first.
What happens if I don't publish a grant?
Draft grants don't appear in your cap table, ownership reports, or stakeholder portfolios until published. Stakeholders won't see unpublished grants. Always publish grants after verifying they're correct.
Can I use the same plan for grants with different vesting schedules?
Yes. While plans can have default presets (like a standard 4-year vesting schedule), you can override these for individual grants. This allows flexibility while maintaining consistency.
What's the difference between granting individually vs. in bulk?
Individual granting is best for one-off grants or when you need to review each grant carefully. Bulk granting is efficient for granting equity to many people at once with similar terms (like annual refresh grants). The end result is the same.
Do I need to attach documents to every grant?
No, documents are optional. However, it's best practice to generate grant letters using document templating or attach signed agreements for audit trail purposes and stakeholder clarity.
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