OptionTrax Releases Customizable Plan Share Fungibility and Recycling Functionality and Reporting

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Jul 28, 2023, 08:42 ET

WEST CONSHOHOCKEN, Pa., July 28, 2023 /PRNewswire/ -- OptionTrax®, the industry-leading equity plan administration software provider today announced the release of a giant step forward in the ability of issuers to track and report on share fungibility and recycling. The new functionality allows issuers to not only recycle plan shares, but to configure share recycling for canceled or withheld shares, and to recycle shares from retired plans into current active incentive plans. Issuers will also be able set fungibility ratios per plan and have auditable share history for recycled and fungible shares.

Easy-to-use software backed by deep expertise

Elena Thomas, COO, commented, "With the volatility and depressed stock prices of the past few years, burn rate has become increasingly important to issuers, and solutions like recycling shares from retired plans to new plans have become important mitigation tools. Until now, share recycling between plans has been a tedious, time-consuming manual process, fraught with potential errors and lack of ability to track and report on the share movements. Our enhanced fungibility features also allow Issuers to set fungibility at the award-type level per plan, to ensure compliance with stakeholder expectations. With OptionTrax's new recycling and fungibility features, administrators and the 'C' suite no longer have to worry about being able to accurately report plan share availability to the Board of Directors, shareholders and, if public, the SEC."

OptionTrax, offering both equity plan administration and Cap Table management software, now automates the flow-through of the share recycling and fungibility to the cap table and, importantly, reports on the calculations and the effective date of any transactions. In addition, OptionTrax maintains the record of the use of plan share fungibility and maintains the limitations on its use between plans.

The new functionality includes:

Per plan control over share recycling and fungibility rules
Per award type fungibility ratios
Flow-through to reporting

on the equity plan side, plan totals and shares remaining to issue reporting for a compensation committee/BOD
on the cap table side, flow-through of shares remaining into the fully diluted cap table

OptionTrax eliminates both the excessive time and worry plan administrators and company management have had to deal with when establishing and reporting on plan share recycling. Now plan administrators do not have to manually calculate and adjust the shares available to issue or cap table calculations each time shares are recycled. This new functionality allows issuers who have been contemplating using share recycling or fungibility to do so in an easy-to -use and accurate manner and resolves the concerns about accurate reporting on recycling. It is a tool that helps limit share dilution without diminishing the incentive of their equity benefit plans in any way.

Mrs. Thomas concluded, "We are proud to lead the industry once again in providing tools for issuers to easily make the most efficacious use and get the most benefit from their equity plans. The OptionTrax System has always been the easiest-to-use and most comprehensive software for plan administrators because our design team are all CEPs who have been administrators themselves. We are dedicated to continuing our thirty-year history of focusing on issuers' needs."

Media Contact:
Scott Miller
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SOURCE OptionTrax