SAP ABAP IMG Activity SIMG_CMP_XX_LTI_004 (Define Vesting Rules)
Hierarchy
☛ SAP_HRRXX (Software Component) Sub component SAP_HRRXX of SAP_HR
   ⤷ PA-CM (Application Component) Compensation Management
     ⤷ PCMC (Package) Customizing Compensation Management
IMG Activity
ID SIMG_CMP_XX_LTI_004 Define Vesting Rules  
Transaction Code S_AHR_61014409   (empty) 
Created on 19990310    
Customizing Attributes CMP_00_LTI_2_2_XX   Long-Term Incentives, Can, Uncritical 
Customizing Activity SIMG_CMP_XX_LTI_004   Define Vesting Rules 
Document
Document Class SIMG   Hypertext: Object Class - Class to which a document belongs.
Document Name CMP_XX_LTI_004    

In this step, you define your vesting rules and schedules. Vesting rules and schedules determine when an employee can exercise his/her right to receive the award and how much of that award he/she can exercise.

Example of Cliff Vesting

After 3 years, all options are vested. In this instance, you would enter 36 in the Period in months field and 100 in the Percent field.

Example of Graduated Vesting

20% of granted options are vested in year 1, 40% vest in year 2 and the last 40% in year 3. In this case, you would enter the following data:

Period in months    Percent

12    20

24    40

36    40

Example of Performance-Based Vesting

Vesting after one year

Target achievement under 90%    Vested options 0%

Target achievement over 90%    Vested options 30%

Target achievement over 110%    Vested options 40%

Vesting after two years

Target achievement under 90%    Vested options 0%

Target achievement over 90%    Vested options 60%

Target achievement over 110%    Vested options 80%

Vesting after 3 years

Target achievement under 90%    Vested options 0%

Target achievement over 90%    Vested options 100%

Target achievement over 110%    Vested options 100%

In this case, you would enter the following data:

Target achievement (%)    Lock period in months    Percentage vested (%)

90%    12 Months    30%

90%    24 Months    30%

90%    36 Months    40%

110%    12 Months    40%

110%    24 Months    40%

110%    36 Months    20%

Requirements

Standard settings

Recommendation

Activities

  1. Determine which vesting rules and schedules you require in your organization
  2. Choose New entries
  3. Enter an identifier and a description
  4. Select a vesting rule and choose Vesting schedule from the navigation area
  5. Choose New entries
  6. Enter the relevant data to define your vesting schedules
  7. Save your entries
  8. Repeat steps 1 to 7 until you have defined all your vesting rules and schedules.

Further notes

Business Attributes
ASAP Roadmap ID 203   Establish Master Data 
Mandatory / Optional 2   Optional activity 
Critical / Non-Critical 2   Non-critical 
Country-Dependency A   Valid for all countries 
Maintenance Objects
Maintenance object type C   Customizing Object 
Assigned objects
Customizing Object Object Type Transaction Code Sub-object Do not Summarize Skip Subset Dialog Box Description for multiple selections
V_T71LV1CL C - View cluster SM34  
History
Last changed by/on SAP  20011011 
SAP Release Created in