The Comprehensive Solution for Managing and Accounting for Employee Ownership Plans

Onboarding

Seamless and Guaranteed On-boarding Process

New clients simply need to send their data to LoyaltyOptions in their existing spreadsheets, and our staff will load the data onto the system and create a reconciliation report that shows and explains any discrepancies. This process is 100% guaranteed, and you would not be asked to pay your invoice until and unless we exceed your expectations every step of the way.

Share Management

Share Certificate Generation

Private companies can generate their share certificate directly from the system. Different share certificate formats are available in LoyaltyOptions.

Secondary Market Support

LoyaltyOptions allows the private company shareholders to trade shares among themselves, in an anonymous basis, at a price set by the company. This same process allows the company to buy back the shares from the shareholders who want to sell their shares but cannot find another shareholder to buy them.

Capitalization Table Management and Multiple Classes

LoyaltyOptions provides multiple versions of capitalization tables to suit the different needs of companies. Multiple classes are fully supported within LoyaltyOptions.

 

Data Entry

Different Modes of Data Loading

Users of LoyaltyOptions have the choice of loading their data onto the system using different methods, including, single transaction add, multiple transaction add/or bulk upload from spreadsheets. In addition, they can also ask that the LoyaltyOptions team loads their data for them.

Grant Management

Support for All Types of Grants and Plans

Grants and Plans supported by LoyaltyOptions include:

  • Employee Stock Options

  • Restricted Shares

  • Share Appreciation Rights (Phantom Shares)

  • Convertible Securities

  • Employee Share Purchase Plans

  • Share Loan Transfer Plans

 

Grant Vesting Acceleration/Deceleration and Grant Modification

LoyaltyOptions supports all types of grant modifications, including the accounting treatment of these modifications. These include:

  • Grant Acceleration

  • Grant Deceleration

  • Strike Price Modification

  • Expiry Date Modification

Performance Grants and Performance Conditions

LoyaltyOptions supports adding performance criteria to the different grants (e.g. options, restricted shares, phantom shares, ...) and attaching non-market based performance criteria to them. For market-based performance conditions, a separate valuation needs to be done for them, which are supported by LoyaltyOptions Monte-Carlo Simulation valuations. Of course, LoyaltyOptions supports both the administration and accounting of performance grants.

Grant Letter Generation

LoyaltyOptions supports the generation of the grant letters for your employees. While there are many grant letter formats that you can choose from, if you want LoyaltyOptions to add your own format to the portfolio of grant letters offered, we would gladly do that for you.

Employee Portal

Employee and User Interface

LoyaltyOptions a special interface for the grant holders, employees and investors. Actions available through this portal include:

  • Reviewing the status of the employee  holdings

  • Accepting the offered grants on-line

  • Putting requests for settling their grants

  • Transacting in the secondary market

Accounting

Support for the Different Accounting Standards

LoyaltyOptions support both the US Stock-based Expense Reporting Standard (ASC 718) and the IFRS Share-based Payments Standard (IFRS 2).

 

Mark-to-market Accounting

According to ASC 718 and  IFRS 2, cash-settled grants expenses need to be accounted for based on mark-to-market principles; this introduces a very high level of complexity if done manually. LoyaltyOptions take out the mystery of the mark-to-market calculations and provides the full justifications of the calculations.

Customized Disclosures

LoyaltyOptions allows its users to customize the view of the disclosures they generate on a quarterly or annual basis. This feature would allow the LoyaltyOptions users to generate all their periodic disclosures via one single report.

Various Valuation Models and Calculators

LoyaltyOptions provides various models for grant valuation, including Black Scholes valuation, Cox-Ross-Rubinstein Binomial valuation, Jarrow-Rudd Binomial valuation and Leisen-Reimer Binomial valuation. In addition, LoyaltyOptions provides Monte-Carlo simulation based on the above Binomial models. All the above valuations come with a complete justification in the form of automatically generated spreadsheets that contain the formulae for the valuation justification.

Various Customizable Accounting and Administrative  Reports

LoyaltyOptions provides various reports that show the history of the accounting journal entries, in addition to running hypotheticals associated with the future expectations. These reports include, but are not limited to statistical reports as of a date, periodic statistical reports, periodic  accounting reports, comparison (period and plan) reports, transaction impact reports, journal entry reports, diluted number of share reports, and others. These reports are fully customizable online based on the user's needs.

Administration

Sophisticated Roles and Entitlement System

We consider our Roles and Entitlement System as one of the most powerful technical features of LoyaltyOptions. The roles of a particular user dynamically modify the menu to entitle the user only to the modules he/she has access to. In addition this system is fully database driven, that is, any modifications can happen in real-time with no programming.

 

Time and Project Management

LoyaltyOptions allows the users to enter their time on the system, and allows the managers to generate the reports that would guide the creation of stock-based compensation grants for the employees. In addition, LoyaltyOptions comes with a simple project management tool attached to the time-management system to allocate the time entered to specific projects and tasks, in addition to the specific activities.

And, this is just the beginning

LoyaltyOptions has much more features that what is mentioned above; you owe it to yourself and to your company to assess how it can benefit your company.

Our commitments to our customers:

Dream it, and we will make it happen

We will exceed your expectations every step of the way

Sandbox Environment

Users of LoyaltyOptions have access to our sandbox environment where they can make changes to their existing company data and test specific what-if scenarios.