Employees/Former Employees can exercise their options electronically via ACH on Pulley. Pulley works with any bank account supported by Plaid.
Former employees must be within their post-termination exercise time frames to have the exercise function available.
Note: This feature is available on Pulley's Growth plan. If you do not see the button for "Request to Exercise Option" on your account, send your company admin this article to help them enable this feature.
Under Submit Exercise Request (As a stakeholder) section 4 will show how to download the exercise form document.
The below video covers the exercise process from both the admin and stakeholder perspective. As the employee, you want to focus on the experience from 'Agatha's' perspective, from about 1:15.
Submit Exercise Request (As a stakeholder)
Request to exercise options - When you log in to Pulley, select the portfolio of the company that you are looking to exercise your options.
Then select the option you wish to exercise, and hit ‘Exercise Options’ (this button will only be available if the company has connected their bank account to enable electronic exercises.
Submit a request to exercise - Complete the form to submit your exercise request. Option exercise grants may be subject to taxes at the time of exercise. Your taxes will depend on your income and state of residence. Pulley collects taxes on your behalf as part of the exercise. However, we are not responsible for verifying the correct amount of taxes is collected. Consult your tax accountant to learn more about taxes associated with ISO and NSO exercises.
Submit your payment details - Select the method you want to use to pay for your exercise, either via ACH or off Pulley (cash, check, etc.)
Before submitting payment details, fill in the required forms and send them to the company administrator - Once you’ve entered the payment information you will then need to fill in the notice of exercises, these documents can be downloaded from under the ‘Sign Agreements’ section. When the forms are completed they will then need to be sent to the company administrator (this process is manual and has to be done off-Pulley), they will then attach the completed forms to the security for book keeping.
Request submitted - Your company administrator will review the request. You will receive an email once the request is approved.
Exercise complete and remaining tasks - Once the company approves your exercise request, you can proceed with payment either via Plaid if you have chosen ACH or manually via cash, check, etc directly to the company. Once this process is complete your exercise is complete. After which you will need to click on your tasks and file your 83(b).
Click on your tasks on the top right, followed by ‘Upload Form’, this will then bring you to complete your 83(b) form.
The exercise is now complete!
Reviewing and Approving Exercise Requests (As an Administrator)
Review exercise requests - When a new exercise request comes in, on the left navigation under ‘Hire & Retain’ → Hit ‘Exercise Requests’ → then Hit ‘Review’.
Review the exercise request - Review the details of the exercise request, then decide whether to approve or reject the request.
Confirm payment - Once the request has been approved the optionee can proceed with payment. Once the payment has been confirmed, as the administrator you can then mark the exercise request as paid.