Hierarchy
SAP_HRRXX (Software Component) Sub component SAP_HRRXX of SAP_HR⤷
PA-CM (Application Component) Compensation Management⤷
PCMP (Package) Compensation management
Basic Data
| Data Element | CMP_LT_EXMTH |
| Short Description | Exercise method |
Data Type
| Category of Dictionary Type | D | Domain |
| Type of Object Referenced | No Information | |
| Domain / Name of Reference Type | CMP_EXMTH | |
| Data Type | CHAR | Character String |
| Length | 4 | |
| Decimal Places | 0 | |
| Output Length | 4 | |
| Value Table |
Further Characteristics
| Search Help: Name | ||
| Search Help: Parameters | ||
| Parameter ID | ||
| Default Component name | ||
| Change document | ||
| No Input History | ||
| Basic direction is set to LTR | ||
| No BIDI Filtering |
Field Label
| Length | Field Label | |
| Short | 10 | Method |
| Medium | 16 | Exercise method |
| Long | 20 | Exercise method |
| Heading | 4 | Mthd |
Documentation
Definition
Specifies how an employee can exercise the options in which he or she is vested, in other words how he or she can buy the corresponding shares.
The following exercise methods are defined in the standard:
- Cash
The employee uses his or her own cash or a loan from the company to buy the shares.
- Cashless exercise
The broker advances the employee funds for exercising the option. This method is called cashless because the employee does not provide any of his or her own money for the sale. Instead, he or she pays for exercising the options with the proceeds from the sale of the corresponding shares.
- Stock swap
The employee exchanges shares that he or she already owns for new shares. He or she uses the proceeds from the sale of the old shares to pay for the new shares.
Example
An employee has the option to buy 1000 enterprise shares. The purchase price is EUR 10 per share (1000 shares * EUR 10 = EUR 10,000). At the time of exercising, the market value is EUR 25. In that case the employee can pay for the exercise by exchanging 400 shares that he or she already owns for the new shares (400 shares * EUR 25 = EUR 10,000).
Supplementary Documentation - CMP_LT_EXMTH0009
Use
Dependencies
In the Sale at Exercise field you specify for each exercise method whether the employee is allowed to sell the shares obtained by exercising directly after they have been exercised.
For the Cashless method, you should specify Must Sell All or Free Choice of Number, as this exercise type assumes that the employee sells the shares.
Example
History
| Last changed by/on | SAP | 20030120 |
| SAP Release Created in |
