You can terminate an equity plan in Pulley if your company adopts a new plan or no longer wants to issue grants from an existing one. Once a plan is terminated, no additional grants can be issued from it.
When terminating a plan, you’ll have the option to pour over any remaining shares (including shares returned from cancelled grants) into another equity plan. This is commonly used when replacing an old plan with a newly approved one while preserving unused shares.
Terminating a plan does not impact grants that have already been issued. Those grants remain on the cap table for record keeping and reporting purposes.
How to terminate an Equity Plan
Navigate to the left-hand menu and select Cap Table.
Select Equity Plans.
Select the equity plan you want to terminate.
In the upper-right corner, select Actions.
Then select Terminate.
A termination workflow window will appear.
Enter the following details:
Termination date
Board approval date
(Optional) Equity Plan to Reallocate
Optional: Pour Over Remaining Shares to Another Plan
If you want to move the remaining shares from the terminated plan to another plan:
In the Equity Plan to Reallocate dropdown, select the new equity plan.
Pulley will move the remaining available shares from the terminated plan into the selected plan as well as any cancelled shares from currently outstanding grants.
If you do not want to roll over shares, leave this field blank (this is the default setting).
Common Scenarios for Pouring Over Shares
Companies typically pour over remaining shares when transitioning to a new equity plan.
Common scenarios include:
Adopting a new board-approved equity plan
A company may replace an older plan with a newly approved one and move unused shares into the new plan.Increasing the option pool through a new plan
If a company creates a new plan with a larger share reserve, they may terminate the old plan and roll over the remaining shares.Administrative cleanup
Some companies consolidate multiple plans into a single plan to simplify equity management.
If you are unsure whether shares should be rolled over, confirm with your legal counsel before terminating the plan.
What Happens After a Plan Is Terminated
Once the termination is confirmed:
The equity plan will be marked as terminated in Pulley.
The available to grant count will be lowered to 0 and no new grants can be issued from that plan.
Existing grants remain unchanged and will continue to appear on the cap table. If cancelled, they will pour over to the designated equity plan.
The plan will remain visible in your records for historical reporting and audit purposes.
If shares were poured over to another plan, those shares will be added to the available pool of the selected plan.