Cancel Employee Options (Lapse Options)

When employees leave your company, you'll typically need to cancel some or all of their unvested options. This process, called "lapsing," automatically returns cancelled options to your unallocated pool for future grants.

When to Lapse Options

Use the lapse function when employees leave the company and you need to:

• Cancel all options for the employee

• Stop vesting from their termination date (keeping vested options)

• Cancel milestone-based options that won't be achieved

How to Lapse Options

Method 1: From Option Pool

1. Click Incentive plans → Options from the main menu

2. Click View pool on the relevant option plan

3. Find the employee's offer and click Offer actions then Stop vesting (lapse) from the dropdown

   

4. Choose your lapse method:

   • Stop on Date: Specify termination date - vested options remain, unvested options are cancelled

   • Cancel Offer: Removes all granted options (vested and unvested)

   • Milestone: Cancel options tied to unachieved milestones

     

5. Optional: Check Accelerate options to vest additional options on the termination date

   

6. Click Confirm to finalize

Method 2: From Option Holders

1. Go to Ownership → Cap table → Option holders

2. Find the employee and click More → Lapse Options

3. Select the relevant option holder and offer

4. Follow the same lapse process as Method 1

What Happens Next

Lapsed options automatically return to your unallocated pool and can be granted to new employees. The employee retains any vested options (unless you chose "Cancel Offer"), which they can exercise according to your plan rules.

Still Need Help?

Contact our support team through the chat for guidance on using the lapse functionality and managing option grants.