Introduction
A release election window is a time-limited period during which your stakeholders choose how they want their vested RSUs or PSUs to be settled. You set the window dates, pick the settlement methods on offer, and stakeholders respond before the deadline. Once the window closes, you finalise the releases and Ledgy creates the settlement transactions for you.
This article walks through the full process — from creating the window to publishing the final transactions — and shows what your stakeholders see at every stage.
What is a Release Election Window?
A Release Election Window allows you to:
Collect settlement preferences from stakeholders before their RSUs vest
Set a default settlement method that applies automatically if no selection is made
Process bulk settlements for multiple stakeholders in a single workflow
Provide transparency by showing stakeholders estimated values and outcomes
When you create a Release Election Window, eligible stakeholders will see a card in their portfolio dashboard prompting them to select their preferred settlement method before the window closes.
Before you start
Your RSU or PSU grants must have vested units by the effective vesting date you set (or by the window closing date if you leave the effective date blank)
Set up Tax Rules if you want Ledgy to prefill tax-rate estimates in the settlement summary
If you plan to offer Sell to cover or Sell all shares, your company must be set as a public company with trading enabled
A grant that already has a pending release cannot be included in a new window until the existing release is completed
Important: The closing date is required. If a stakeholder does not choose a method before the window closes, the fallback settlement method you configured is applied automatically.
Available Settlement Methods
Depending on your company configuration, stakeholders can choose from the following settlement methods:
Method | Description | When to Use |
Hold all (Bank transfer) | Keep all shares; pay costs via bank transfer | Stakeholder wants to retain all shares and has funds available |
Hold all (Payroll) | Keep all shares; costs deducted from next payslip | Stakeholder wants to retain shares without upfront payment |
Withhold to cover | Company withholds enough shares to cover tax and fees | Most common choice - no payment required from stakeholder |
Sell to cover | Enough shares are sold to cover costs | Available for public companies with trading enabled |
Sell all shares | All shares sold; net proceeds transferred after costs | Available for public companies with trading enabled |
Note:
"Sell to cover" and "Sell all" options are only available for public companies with trading enabled.
If you enable only one settlement method, stakeholders do not need to choose — all releases are marked as Release ready immediately and you can skip straight to finalisation.
Step 1 — the release election window
Step 1: Open the window creation modal
Go to Equity Events > Windows and click Add release window.
Step 2: Choose equity plans and stakeholders
Equity plans — Select the RSU or PSU plan(s) that contain the grants you want to settle
Affected stakeholders — Choose individual stakeholders or groups. Only stakeholders with eligible vested grants under the selected plans will appear
Step 3: Set the window period
Opening date — When stakeholders can start making their selection
Closing date (required) — The deadline for stakeholder responses
Effective vesting date (optional) — The cut-off date for determining which grant units are vested. If you leave this blank, Ledgy uses the closing date
Step 4: Configure settlement options
Fallback settlement method — The method applied automatically to stakeholders who do not respond before the window closes
Enable settlement methods — Tick the methods stakeholders can choose from. The fallback method is always included
Step 5: Add financial details
Estimated price per share (FMV) (required) — The fair market value used for all settlement estimates
Volatility buffer percentage (optional) — Only appears if you enable a sell method. Adds a buffer to account for share-price fluctuation
Broker fee configuration (optional) — Only appears for public companies with sell methods. Set a trading fee percentage and minimum fee
Bank account — Required when the "Hold all (Bank transfer)" method is enabled. Select the company bank account stakeholders will transfer funds to
Step 6: Add guidelines and notifications (optional)
Guidelines — Attach a document or paste a link. Stakeholders see a "Read guidelines" link on their settlement page
Notify affected stakeholders — Toggle on to send an email when the window opens. You can add an optional note to the notification
Step 7: Save
Click Save. Ledgy creates release events for every eligible grant under the selected plans and stakeholders. The window opens automatically on the opening date.
Step 2 — What stakeholders see
Once the window opens, stakeholders experience the following flow on their portfolio dashboard.
The release election card
A card appears on the stakeholder's dashboard showing:
The equity plan name
The vesting date and total units vesting
A "Respond by" date (the window closing date) and days remaining
A Respond button
The card status reads "Requires response".
Choosing a settlement method
Clicking Respond opens the settlements page. Here the stakeholder sees:
A breakdown of their eligible grants and units
A Read guidelines link (if you attached guidelines)
A radio-button list of the settlement methods you enabled, each with a short explanation
Reviewing the settlement summary
After selecting a method, a Settlement Summary panel appears (or updates) showing:
Settlement method selected
Number of units / shares
FMV price per share
Gross value
Estimated tax withholding
Net value or cost of settlement
Confirming the election
The stakeholder clicks Confirm settlement to lock in their choice. They can change their selection at any time before the window closes — only the final choice is processed.
After confirming, the card status changes to "Awaiting release".
If the stakeholder does not respond: The fallback settlement method is applied automatically when the window closes.
Payment required (bank transfer only)
If the settlement method is Hold all (Bank transfer), after the admin finalises the release the stakeholder sees a "Payment required" card with:
The company's bank account details (account name, account number, IBAN, BIC/SWIFT)
The amount to transfer
A Mark as paid button
Once the stakeholder clicks Mark as paid, the card status changes to "Sent for approval" and waits for admin confirmation.
Step 3 — Review and finalise releases
Review pending releases
Go to Equity Events > Release elections. Open the Pending tab to see all releases and their statuses:
Awaiting employee — Stakeholder has not yet chosen a settlement method
Release ready — Election complete (or auto-assigned). Ready to finalise
Awaiting payment — Finalised with bank transfer; stakeholder has not yet paid
Paid — Stakeholder has marked the payment as sent; awaiting admin confirmation
Completed — Fully settled
Adjust estimates if needed
Before finalising, you can:
Edit a release to adjust the settlement method, FMV, or volatility buffer
Edit tax obligations to override estimated tax values in bulk
Finalise the releases
Select the releases with status Release ready and click Release. The finalisation is a two-step process:
For non-selling methods (Hold all, Withhold to cover)
Enter the Date of settlement and optionally a Taxable FMV (if it differs from the window FMV). Click Continue.
Review the distribution grid showing each stakeholder's withheld shares, tax obligations, and net shares. Adjust if needed, then click Confirm release, then Create drafts.
For selling methods (Sell to cover, Sell all)
Enter the Date of settlement, Total shares sold, Shares sold price per share, Trading fee handling (company absorbs or allocate pro-rata), and Total trading fee. Click Calculate distribution.
Review the distribution grid showing sold shares, proceeds, tax deductions, and net values. Adjust if needed, then click Create drafts.
Important: Releases that include both selling and non-selling methods must be finalised in separate batches.
Step 4 — Publish transactions
Clicking Create drafts generates draft equity settlement transactions in Ledgy. You are redirected to the Transactions page.
Go to Ownership > Transactions (or follow the redirect)
Review the draft settlement transactions
Click Publish when you are satisfied
Important: Publishing is required to update the cap table and stakeholder holdings. Until you publish, the transactions remain in draft and do not affect ownership records.
Step 5 — Confirm payment receipts (bank transfer only)
If any stakeholders used Hold all (Bank transfer):
The stakeholder sees a Payment required card on their dashboard with the company bank details and transfer amount
After transferring funds, the stakeholder clicks Mark as paid — the status changes to Paid on the admin side
On the Release elections page, select the releases marked Paid and click Mark as paid to confirm receipt
The release status moves to Completed
FAQs
What happens if a stakeholder does not respond before the window closes?
The fallback settlement method you configured is applied automatically. You can then proceed with finalisation using that method.
Can stakeholders change their election after submitting?
Yes. Stakeholders can update their selection at any time before the window closes. Only the final choice is processed.
Can I extend the window closing date?
Yes. You can edit the window to change the closing date as long as the releases have not been finalised.
Why can't I include a grant in a release window?
The grant may have no vested units by the effective vesting date, or it may already have a pending release from another window that must be completed first.
What if I enable only one settlement method?
Stakeholders do not need to choose. All release events are marked as Release ready immediately, and you can proceed straight to finalisation.
Do I need to publish transactions after finalising?
Yes. Finalising creates draft equity settlement transactions. You must publish them on the Transactions page to update the cap table and stakeholder holdings.
When do stakeholders see bank details for payment?
Bank details appear only for the Hold all (Bank transfer) method, after the admin has finalised the release. The stakeholder then sees a payment card with the company account details and the amount to transfer.
How are taxes calculated in the settlement summary?
Ledgy uses the FMV you set on the window and any tax rules configured for the stakeholder's jurisdiction. The values shown are estimates — you can override them during the finalisation step.