Options – recording option schemes and option grants in Kudocs
Can I record option schemes in Kudocs?
Yes. You can record in Kudocs details of option schemes that a company has created. You will need to create the scheme outside of Kudocs (as this is often complex and specific to your company’s requirements and needs specialist advice), but once created you can record the high level information about the scheme in Kudocs (including attaching documents such as scheme rules) and then record details of any grants under that scheme. EMI, CSOP, Unauthorised, or other types of scheme are supported!
Can I record option grants in Kudocs?
Yes. You can record in Kudocs details of option grants that a company has made under any schemes that are recorded in Kudocs. You will need to prepare the grant documentation outside of Kudocs (as this is often complex and specific to your company’s requirements and needs specialist advice), but once created you can record all details of the grant. This includes UMV/ AMV, exercise triggers, vesting model (time with cliffs, periods and automatic vesting) or performance/ event based vesting and more. You can record multiple grants under each scheme and multiple grants awarded to a single option holder.
What is the difference between an option scheme and an option grant?
The scheme is the framework, the grant is the individual award made under it. Changing the scheme rules affects everyone holding options under it (and usually requires consent where it prejudices existing holders). Changing a grant affects one person.
The option scheme (or plan) is the set of rules governing how options work in the company. Adopted once, typically by board resolution and often a shareholder resolution too. The scheme itself gives nobody any shares: it is the rulebook. For tax-advantaged schemes (EMI, CSOP, etc) the rules also have to satisfy the statutory conditions and the scheme normally needs registering with HMRC.
The option grant is the individual award to one or more people under the scheme rules. It sets the person-specific terms, e.g:
- the grantee
- number of shares under option
- exercise price per share
- date of grant
- vesting schedule and any performance conditions
- any terms specific to that individual
Everything not spelled out in the grant falls back to the scheme rules. A grant is usually approved by a board resolution.
Can I create options schemes and grant options using Kudocs?
No, but you can record them once they have been created. Kudocs does not – currently – provide a way for you to create option schemes or grants via the platform. This is because these are highly specific to each company and, we believe, require specialist advice to prepare. Therefore we do not provide an automatic process to create them.
Will Kudocs model how options vest in a grant?
Yes. You can record the vesting structure of grants in Kudocs in two ways:
1. Time-based vesting: This will automatically calculate how the options vest over time based on certain parameters you tell Kudocs – including immediate vest (and amount) cliff date (and amount) and vesting period (and amount) thereafter.
2. Vesting based on certain targets (e.g. sales targets) or events (e.g. company valuation) being met or for time based vesting where the vesting events and amounts are not consistent (e.g. 10% in year 1, 20% in year 2, 40% in year 3…). Use this option to define manually what those events are and record when and how many options have vested.
What parameters about an option scheme can I set in Kudocs?
All the key ones needed to have a clear and comprehensive summary of a company’s option schemes and generate a report on this. Including scheme name, type (EMI, CSOP, etc), authorised total and more.
What parameters about an option grant can I set in Kudocs?
All the key ones needed to have a clear and comprehensive summary of a company’s option grants and generate registers on this. Including pricing information (including UMV and AMV), exercise triggers, vesting dates and amounts (or ad hoc notes), vesting structure, option holders, immediate vest, lapse and exercise (full and partial) and more.
What types of vesting does Kudocs support?
Kudocs supports ‘standard time based vesting (i.e. immediate vest, cliff, regular vesting thereafter with rounding up/down and remainder adjustment) or performance/ event /non-standard time vesting.
Can Kudocs handle lapsed options?
Yes. You can record lapses at the grant level and at the option holder level (full and partial lapse).
Can option holders see their option grant information on Kudocs?
Yes – companies can grant option holders access to their option holder dashboard where they will be able to see details of their option grants (and only theirs – not anyone elses!) and details of the scheme to which the grant belongs. For more information see https://www.kudocs.co.uk/faqs/stakeholder-dashboard/ and https://www.kudocs.co.uk/guides/shareholder-dashboard/.
Can I record an option exercise in Kudocs?
Yes, you can record when options are exercised in Kudocs and the system will calculate the granted/ vested/ authorised totals accordingly. You can also link the exercise to the corresponding share issue, so you have a full record of everything.
Last updated: 23/09/2026 by Kudocs Admin