Cancel Employee Options (Lapse Options)
Lapsing cancels options and returns them to the unallocated pool. Use the lapse function when an employee leaves and you need to cancel their unvested options, or when milestone-based options will not be achieved.
Note: For employees leaving the company, the off-boarding flow handles lapsing as part of a broader departure process. Off-boarding is the recommended workflow to handle leavers.
Lapse options from the option pool
Go to Plans → Options and click View pool for the relevant plan.
Find the grant and click Offer actions.
Select Stop vesting (lapse).
Choose a lapse type:
Stop on date: stops vesting at a specific date; options vested up to that date are kept, everything after lapses
Cancel offer: cancels all remaining vested and unvested options immediately
Milestone: cancels specific unachieved milestone vesting events (select which milestones and how many options to cancel)
Enter the stop vesting date or cancel date.
For time-based or full cancellation, you can optionally check Accelerate vesting to vest additional options on the cancellation date before lapsing the rest.
Click Confirm.
Lapsed options return to the unallocated pool immediately and can be reused for future grants.
Lapsing also works for RSA (ESS) and RSU grants from their respective plan views.