HR-XML 3.0 Standards, 2009 September 23.
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The Stock Plan noun is used to provide the stock plan administrator and other stakeholders with the plan design information they require to carry out their roles within stock option grant and exercise processes. For an overview of these processes, see Chapter 32, Stock Plan Scenarios.
Among the data that can be communicated with the StockPlan noun are:
A formal, legal name under which they have been defined. For example, "Software Company Long Term Incentive Plan 2010."
An inception date (the date the Plan was established) and a plan end date (the date on which the plan may be terminated). Plan Years generally span over one year although not necessarily a calendar year.
Plans also may have a variety of other distinguishing features that also can be described by the StockPlan schema:
Plan Type. The type of stock option plan determines, among other things, exercise restrictions and tax rules that apply to Participants and the sponsoring Company. There are various types of stock option plans, such as Incentive Stock Option plans (ISO), Nonqualified Stock Option Plan (NQSL), a Restricted Stock Plan, Stock Appreciation Rights Plan (SAR), etc.
Waiting Periods. Waiting periods apply before Participants can exercise their stock options. These waiting periods may begin on the date of the grant, or the Participant’s date of hire. In addition, vesting rules are defined which determine the length of time the Participant must hold the options for a certain percentage to be vested. Vesting also may vary based on the goal of the shares being granted to serve as a long-term or a performance-based incentive. Long-term incentives generally vest on an annual basis and often require the Participant to satisfy a waiting period before vesting begins. Once the waiting period ends, options typically vest ratably. Performance-based incentives vest when the underlying stock price reaches a specified price, although vesting based on other financial triggers are becoming much more common. Vesting always occurs over months or years and as a percentage of shares granted.
Blackout Periods. Blackout periods are also commonly defined in stock plans during which the exercise of options is not allowed. While the blackout period may apply to all Participants, it may also only apply based on a Participant’s position in or relationship to the Company. For example, Participants such as the owner, officers or directors of the Company with inside, non-public knowledge of the Company may be restricted from exercising options during certain periods, while other Participants may not.
Examples of events that could trigger the collaboration, include:
New Stock Plan. An employer's (plan sponsor) establishment of a new stock plan.
Annual Stock Plan Setup. The annual setup or configuration of a stock plan. Typically, plan terms are set for a year.
Organizational Events. A wide variety of organization events can trigger updates of human resource data or otherwise trigger interactions between HR service providers. Among those events are: layoff; location closure; merger; business reorganization; corporate relocation; acquisition; bankruptcy; and divestiture of operating units.