Configure equity settings

Equity settings control how equity compensation displays in Total Rewards and Visual Offer Letter. These settings determine calculation methods, visibility options, currency handling, and the interactive equity slider that lets employees model future equity value.

For detailed guidance on equity slider behavior and valuation modeling, see Equity slider and valuation options. For broader compensation display settings, see Customize compensation display.

Before you configure

You need the settings.communicate.configs edit permission to change equity settings.

Equity settings apply to both Total Rewards (for employees) and Visual Offer Letter (for candidates) unless specified otherwise. Some settings are product-specific and only affect one audience.

Navigate to equity settings

1. Go to Settings in the navigation bar
2. Select Communicate from the left sidebar
3. Select the Compensation tab
4. Scroll to the Equity section

Equity display settings

These settings control what equity information displays to employees and candidates.

Show all growth

Why it matters: Help employees understand the full value potential of their vested equity by showing how it would perform under different growth scenarios. When enabled, employees can use the equity slider to model "what if" scenarios that include both vested and unvested shares, giving them a complete picture of their equity upside.

When enabled: Vested shares show value appreciation based on the equity slider position.

When disabled: Vested equity uses the share price on the vest date without applying subsequent growth.

Default: Enabled

Note: This setting is deprecated and replaced by "Calculating vested equity" when the Value at Vest feature is enabled. If available, use "Calculating vested equity" instead.

Show negative growth

Why it matters: Build trust through transparency by showing employees the honest picture of their equity value, even during market downturns. When the share price drops, employees can see the actual current value rather than an artificially inflated number, which helps set realistic expectations and maintains credibility. Hiding negative growth may feel protective in the short term, but can erode trust when employees discover the real numbers elsewhere.

When enabled: If the share price drops below the grant price or previous value, the equity section shows the decrease. Charts and values reflect the lower price.

When disabled: Negative growth is hidden. Equity displays at the higher of the current price or grant price, preventing employees from seeing decreases.

Default: Enabled

Best practice: Enable this for transparency. Employees deserve to see accurate equity value even when the market is down. Disable only if your company policy is to avoid showing downside volatility.

Show equity values

Why it matters: Help employees understand what their equity is actually worth in dollars, not just share counts. Dollar values make equity compensation real and tangible, especially for employees who are less familiar with equity or struggle to translate share counts into personal financial value. For pre-IPO companies where valuations are uncertain, hiding dollar values lets you communicate equity ownership without committing to a specific valuation.

When enabled: Equity shows dollar amounts calculated from share count multiplied by share price.

When disabled: Only share counts display without dollar values.

Default: Enabled

Product scope: Total Rewards and Visual Offer Letter only (not available in Team View)

Best practice: Enable this unless your company is pre-IPO and prefers not to communicate equity valuations. When disabled, employees can still see share counts and vesting schedules.

Show vested shares

Why it matters: Give employees a complete view of their equity journey by showing both what they have earned (vested) and what they are earning toward (unvested). Seeing vested shares helps employees understand the cumulative value they have built over time and reinforces retention by showing what they would take with them if they left. Hiding vested shares focuses attention on future incentives but can make employees feel like their past contributions are invisible.

When enabled: The equity section includes vested shares along with unvested shares. Employees see their full equity picture.

When disabled: Only unvested shares display. Vested shares are hidden from the equity section.

Default: Enabled

Best practice: Enable this to give employees a complete view of their equity. Disable only if you want to focus employees on future vesting rather than past grants.

Show Learn the Basics

Why it matters: Reduce confusion and support tickets by proactively educating employees about equity concepts right where they need it. The "Learn the Basics" pop-up explains vesting, strike price, and fair market value in plain language, helping employees understand their equity without needing to ask HR or search external resources. This is especially valuable for first-time equity recipients or international employees unfamiliar with US equity compensation.

When enabled: A pop-up appears in the equity section explaining equity concepts like vesting, strike price, and fair market value.

When disabled: The pop-up is hidden.

Default: Enabled

Product scope: Total Rewards and Visual Offer Letter only (not available in Team View)

Best practice: Enable this if your workforce includes employees unfamiliar with equity compensation. Disable if your audience is equity-savvy or if you provide equity education through other channels.

Equity calculation settings

These settings determine how equity values are calculated and displayed.

Employee equity mode

Why it matters: Help employees understand the actual value of their equity by showing it after exercise costs. Net equity answers the question "What is my equity worth after what I would pay to exercise?" which is more useful for financial planning than gross numbers. This reduces confusion and prevents disappointment when employees realize the full gross value does not account for what they pay to exercise. Gross equity can be appropriate if you want to emphasize total market value or if your company primarily grants RSUs where exercise costs are minimal.

Options:

• Net Equity: Displays equity value after deducting exercise costs. For stock options, this shows the spread (current value minus strike price). For RSUs, net and gross values are typically the same because RSUs have no exercise cost.
• Gross Equity: Displays the full market value without deductions. For stock options, this shows the full current value (shares × current price). For RSUs, this shows the full vesting value.

Default: Net Equity

Product scope: Total Rewards only (applies to employees, not candidates)

How to configure: In the Equity section, locate "Employee equity mode" and select Net Equity or Gross Equity.

Candidate equity mode

Why it matters: Set the right expectations for candidates by showing them equity value in the same way you show it to employees. Consistency between candidate and employee views prevents surprises after hire. Some companies choose Gross Equity for candidates to maximize the perceived offer value during competitive recruiting, but this can backfire if candidates feel misled when they see the net value as employees.

Options:

• Net Equity: Displays equity value after deducting exercise costs
• Gross Equity: Displays the full market value without deductions

Default: Net Equity

Product scope: Visual Offer Letter only (applies to candidates, not employees)

How to configure: In the Equity section, locate "Candidate equity mode" and select Net Equity or Gross Equity.

Best practice: Match this to your employee equity mode for consistency. Some companies use Gross Equity for candidates to show the maximum potential value during recruiting.

Grant label

Why it matters: Label equity grants in a way that employees actually recognize and remember, reducing confusion when they have questions or need to reference specific grants. Vesting start date works well for most employees because it is when they started seeing the grant vest. Grant date matches official paperwork but may be less memorable. Grant ID is useful only if employees are already familiar with these identifiers from your equity platform or HRIS.

Options:

• Vesting start date: Labels each grant by the date vesting begins (e.g., "January 15, 2024")
• Grant date: Labels each grant by the official grant date (e.g., "December 1, 2023")
• Grant ID: Labels each grant by the unique identifier from your HRIS or equity management system (e.g., "GRANT-2024-0001")

Default: Vesting start date

How to configure: In the Equity section, locate "Grant label" and select from the dropdown.

Best practice: Use Vesting start date if employees think about their equity by when it vests. Use Grant date if your company refers to grants by award date in communications. Use Grant ID only if your employees are familiar with these identifiers and you need to match equity admin records exactly.

Note: The label appears in the equity timeline and grant details. Choose the format employees will recognize when they have questions.

Slider growth type

Why it matters: Align the equity slider with how your company and employees think about future growth. Future value is intuitive for scenario planning ("What if we IPO at $1B?") and matches how most companies talk about exit targets. Year on year growth works for companies that emphasize consistent compounding and helps employees understand the power of sustained growth rates. The wrong choice can make the slider confusing and reduce engagement with equity modeling.

Options:

• Future value: The slider value represents the total future valuation or share price. Growth is spread evenly across years to reach that target.
• Year on year growth: The slider value represents annual growth rate. Each year compounds on the previous year's value.

Default: Future value

Product scope: Total Rewards and Visual Offer Letter only (not available in Team View)

How to configure: In the Equity section, locate "Slider growth type" and select from the dropdown.

Example:

• Future value: Slider set to 5x means the share price will be 5 times the current price at the end of the projection period
• Year on year growth: Slider set to 5x means the share price multiplies by 5 each year. Starting at $10, year 1 is $50, year 2 is $250, year 3 is $1,250 (exponential compounding)

Equity currency conversion

Why it matters: Make equity values relatable for international employees by showing them in their local currency. Full conversion (values and share price) provides the most localized experience and helps employees in different countries understand equity in familiar terms. Values-only conversion works if you want share price to be a universal reference point that everyone tracks in the same currency. No conversion ensures consistency across all employees but may feel abstract to non-US employees who have to do mental currency math.

Options:

• Values and share price: Both dollar amounts and the share price convert to the employee's currency
• Values only: Dollar amounts convert but the share price stays in company currency
• Do not convert: All equity values display in company currency regardless of employee location

Default: Values and share price

Product scope: Total Rewards and Visual Offer Letter only (not available in Team View)

How to configure: In the Equity section, locate "Equity currency conversion" and select from the dropdown.

Best practice: Use "Values and share price" for full localization. Use "Values only" if share price is a key metric your company communicates in one currency (e.g., all employees track USD share price even if they see local currency values). Use "Do not convert" for single-currency companies or if you want all employees to see the same numbers.

Note: Currency conversion uses exchange rates updated daily. The converted amounts are approximations for employee understanding, not official financial figures.

Show original grant value

Why it matters: Celebrate equity appreciation and demonstrate the value of staying with the company. When employees see that a grant worth $50,000 at issue is now worth $85,000, they can visualize the $35,000 gain and feel rewarded for their tenure. This reinforces the upside of equity compensation and makes abstract equity concepts concrete. Early-stage companies may want to hide this if original valuations were very low, to avoid anchoring employees to outdated numbers.

Options:

• Do not show: Original grant value is hidden
• Per grant only: Original value displays on each individual grant detail
• Annual vesting only: Original value displays in the annual vesting summary
• Per grant and annual vesting: Original value displays in both locations

Default: Do not show

Product scope: Total Rewards and Visual Offer Letter only (not available in Team View)

How to configure: In the Equity section, locate "Show original grant value" and select from the dropdown.

Best practice: Enable this if you want employees to see equity appreciation by comparing current value to grant value. This helps communicate the benefit of equity growth. Disable if grant values were low (e.g., early-stage startups) and you prefer to focus on current value.

Example: An RSU grant worth $50,000 at grant is now worth $85,000. When enabled, employees see both figures and understand the $35,000 gain.

Calculating vested equity

Why it matters: Give employees control over how they model their complete equity picture. Value based on modeled share price lets employees ask "What if the share price hits $100?" and see their full portfolio (vested and unvested) respond to that scenario, which is powerful for understanding total upside. Value at time of vest anchors vested shares to historical reality, which reduces speculation but also reduces the utility of the slider for employees who want to model their complete equity position under different growth scenarios.

Options:

• Value based on modeled share price: Vested equity uses the share price set in the equity slider. Growth applies based on the slider growth type setting (future value or year on year). This lets employees model "what if" scenarios for vested shares.
• Value at time of vest: Vested equity uses the closing share price on the date each vest event occurred. Growth does not apply to vested shares. This shows actual historical value at vest.

Default: Value based on modeled share price

Product scope: Total Rewards and Visual Offer Letter only (not available in Team View)

Feature availability: This setting is only visible if the Value at Vest feature is enabled for your company. If you do not see this setting, your company uses the legacy "Show all growth" toggle.

How to configure: In the Equity section, locate "Calculating vested equity" and select from the radio button options.

Note: This setting replaces the legacy "Show all growth" toggle. The two settings are kept in sync:

• "Value based on modeled share price" = Show all growth enabled
• "Value at time of vest" = Show all growth disabled

Best practice: Use "Value based on modeled share price" if you want vested equity to participate in slider modeling. This gives employees a complete picture when they ask "What if the share price hits $X?" Use "Value at time of vest" if you want to anchor vested equity to actual historical prices and avoid speculation.

Equity slider settings

The equity slider lets employees and candidates model future equity value by adjusting share price or valuation. These settings configure how the slider behaves. For a complete guide to how employees interact with the slider, see Equity slider and valuation options.

To configure the slider:

1. In the Equity section, scroll to Equity slider
2. The preview at the top shows how the slider will appear to employees and candidates

Slider type

Why it matters: Empower employees to explore equity value in the terms they naturally think about. Pre-IPO employees often think in valuations ("We are a $500M company, what if we reach $1B?") while also wanting to understand per-share value. Public company employees focus exclusively on share price because that is what trades daily. Offering both options gives employees flexibility to model scenarios in whichever metric feels more intuitive to them at the moment.

Options:

• Valuation & Share Price: Employees can toggle between modeling by company valuation or share price
• Valuation: Only valuation slider displays
• Share Price: Only share price slider displays

Default: Valuation & Share Price

How to configure: In the Equity slider section, locate "Slider type" and select from the dropdown.

Best practice: Use "Valuation & Share Price" for pre-IPO companies where employees may think in terms of valuation ("We're a $500M company") or share price. Use "Share Price" only for public companies. Use "Valuation" only if share price is not meaningful to your audience.

Default to

Why it matters: Start employees on the metric that aligns with how your company communicates growth and success. If your leadership talks about valuation milestones ("We are targeting $1B valuation"), employees will expect to model valuation first. If you emphasize share price ("Our stock is at $50"), that should be the default. The default sets the frame for how employees initially think about their equity upside.

Options:

• Valuation: The valuation slider displays by default
• Share Price: The share price slider displays by default

Default: Valuation

Constraints: This setting only applies when slider type is "Valuation & Share Price". It has no effect if only one slider type is enabled.

How to configure: In the Equity slider section, locate "Default to" and select from the dropdown (only visible when Slider type is "Valuation & Share Price").

Best practice: Default to the metric employees discuss most. Pre-IPO companies typically default to Valuation. Post-IPO companies default to Share Price.

Growth format

Why it matters: Choose a format that matches how employees think about equity upside. Multiples ("What if we 5x?") are intuitive and common in startup conversations. Percentages ("What if we grow 25% per year?") work well for companies that emphasize growth rates or want to model conservative scenarios. Open Editor gives maximum flexibility but can be overwhelming if employees do not know what values to try. The right format makes the slider engaging and useful; the wrong format makes it confusing or ignored.

Options:

• Open Editor: Employees can manually enter any share price or valuation value. The slider adjusts to accommodate the entered value.
• Multiples (1x, 2x, 3x): The slider shows multiples of the current value. Marks are whole numbers (1x, 2x, 3x, etc.).
• Percentages (10%, 20%, 30%): The slider shows percentage growth. Marks are percentage intervals.

Default: Multiples (1x, 2x, 3x)

How to configure: In the Equity slider section, locate "Growth format" and select from the dropdown.

Best practice: Use Multiples for intuitive modeling ("What if we 5x?"). Use Percentages if your company communicates in growth rates ("What if we grow 25% per year?"). Use Open Editor if employees need flexibility to model specific scenarios not covered by preset marks.

Note: When using Open Editor, the slider automatically expands if employees enter values outside the current range, buffering the entered value by ±5 to ensure the slider accommodates the input.

Slider range and marks

Why it matters: Set realistic but aspirational boundaries for equity modeling. The max value signals to employees what level of upside is possible, while marks guide them to meaningful scenarios (e.g., 2x, 5x, 10x). A max that is too low can feel limiting and demotivate employees who want to dream big. A max that is too high can feel unrealistic and reduce credibility. Marks help employees quickly jump to scenarios you have thought through (e.g., Series B target at 3x, IPO target at 7x).

When growth format is set to Multiples or Percentages, you configure the slider range and marks:

Min value: The minimum slider value (e.g., 1 for multiples, 0 for percentages)

Max value: The maximum slider value (e.g., 10 for multiples, 500 for percentages)

Default value: The value the slider starts at when the page loads (e.g., 1 for multiples, 0 for percentages)

Step: The increment when employees move the slider (e.g., 0.5 for half-step multiples, 10 for percentage increments)

Marks: The labeled points along the slider (e.g., [1, 3, 5, 7, 10] for multiples)

Defaults:

• Multiples: Min 0, Max 10, Default 1, Step 0.5, Marks [1, 3, 5, 7, 10]
• Percentages: Min 0, Max 500, Default 0, Step 10, Marks [100, 200, 300, 400, 500]

How to configure: In the Equity slider section, enter values for Min value, Max value, Default value, Step, and Marks (comma-separated list). These fields are hidden when Growth format is "Open Editor".

Best practice: Set the max value to the highest scenario you want employees to model. Use marks to highlight meaningful milestones (e.g., [1, 2, 5, 10] for conservative to aggressive scenarios). Keep step size small enough for precision but large enough to avoid overwhelming choices.

Note: When growth format is Open Editor, these fields are hidden because the range adjusts dynamically.

Milestones

Why it matters: Connect the abstract slider to real business goals so employees understand what different positions mean. A milestone like "Series C Target: $800M valuation" helps employees map a slider position to a concrete outcome they have heard leadership discuss. This makes equity modeling feel grounded in reality rather than pure speculation, and it reinforces company strategy by showing employees the milestones that matter.

How to add a milestone:

1. Select Add milestone
2. Enter a Title (required, e.g., "Series C")
3. Enter a Description (optional, e.g., "Expected Q3 2025")
4. Upload an Image (optional, displays next to the title)
5. Select milestone Type (Valuation or Share Price)
6. Enter the Valuation or Share Price value where the milestone appears on the slider
7. Select Save

Best practice: Use milestones to anchor the slider to real business goals. Examples:

• "Series C Target: $800M valuation"
• "IPO Price: $45 per share"
• "Profitability: $1.2B valuation"

Milestones help employees understand what different slider positions represent. Limit to 3-5 milestones to avoid clutter.

Note: Milestones appear as markers on the slider when employees drag it. The slider snaps to milestone values for easy selection.

What happens after you configure

Changes to equity settings apply immediately to all employees and candidates viewing Total Rewards and Visual Offer Letter. Employees will see updated calculations, visibility, and slider behavior the next time they access the equity section.

Common configuration scenarios

Scenario 1: Pre-IPO startup showing full equity picture

• Show equity values: Enabled (show valuations)
• Show vested shares: Enabled (full picture)
• Employee equity mode: Net Equity (help employees understand take-home value)
• Grant label: Vesting start date (easier to remember)
• Slider type: Valuation & Share Price (model both metrics)
• Default to: Valuation (pre-IPO standard)
• Growth format: Multiples (intuitive "5x scenarios")
• Milestones: Add Series B, Series C, and IPO targets

Scenario 2: Public company with conservative approach

• Show negative growth: Disabled (avoid showing drops)
• Show vested shares: Enabled (full picture)
• Employee equity mode: Gross Equity (show full market value)
• Grant label: Grant date (official records)
• Slider type: Share Price (public companies focus on stock price)
• Growth format: Percentages (model growth rates)
• Calculating vested equity: Value at time of vest (historical accuracy)

Scenario 3: International company with diverse workforce

• Show Learn the Basics: Enabled (educate new employees)
• Equity currency conversion: Values and share price (full localization)
• Employee equity mode: Net Equity (easier to understand take-home)
• Grant label: Vesting start date (universal understanding)
• Growth format: Open Editor (flexibility for different employee scenarios)

Frequently asked questions

Can I set different equity settings for employees vs. candidates?

Some settings have separate employee and candidate options (Employee equity mode and Candidate equity mode). Most settings apply to both Total Rewards and Visual Offer Letter. You cannot configure completely separate equity experiences for the two products.

What happens if I change the slider growth type after employees have used it?

The slider resets to defaults for all employees. Previous slider positions are not saved. Employees will need to adjust the slider again with the new format.

Do equity settings affect Team View?

Most equity settings are specific to Total Rewards and Visual Offer Letter. Team View has its own equity configuration under Settings > Team. The only shared setting is "Show negative growth", which applies across all products. For Team View equity settings, see Team View customizations.

How do currency conversions affect reported values?

Currency conversions are for employee understanding only. Equity calculations always use the company's base currency. Converted amounts are approximations based on daily exchange rates and should not be used for tax or financial reporting.

Can employees see my configured milestones?

Yes. Milestones display as labeled markers on the equity slider. Employees see the title, description, and image you configure. Do not include confidential business information in milestone labels.

What if my HRIS equity data doesn't include grant IDs?

If you select "Grant ID" as the grant label and an employee's grant is missing the ID field, Pave falls back to vesting start date for that grant. Grants with IDs display the ID. Grants without IDs display the date.

How does "Calculating vested equity" interact with the equity slider?

When set to "Value based on modeled share price", vested shares use the slider position to calculate value. If an employee drags the slider to 5x, their vested equity also shows 5x growth. When set to "Value at time of vest", vested shares ignore the slider and always show the historical vest date price.