What is exercisable awards in SAP PA-EC - Enterprise Compensation Management?

SAP Term: exercisable awards

• Component: PA-EC

• Component Name: Enterprise Compensation Management

• Description: Number of vested awards that are still available for exercising vested awards minus exercised awards.

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• Key Concepts: 
  Exercisable awards are a type of compensation offered by SAP’s Enterprise Compensation Management (PA-EC) module. They are a form of incentive-based compensation that allows employees to purchase company stock at a discounted rate. The employee can then sell the stock at the current market rate, potentially making a profit. 
  
  How to use it: 
  Exercisable awards are set up in the PA-EC module. The company sets the terms of the award, such as the number of shares, the discount rate, and the vesting period. Once the award is set up, employees can purchase the stock at the discounted rate and then sell it at the current market rate. 
  
  Tips & Tricks: 
  When setting up exercisable awards, it is important to consider how long it will take for employees to vest in their awards. This will determine how long they have to wait before they can purchase and sell their stock. Additionally, it is important to consider how much of a discount you are offering employees so that they can make a profit from their stock purchases. 
  
  Related Information: 
  For more information on exercisable awards and other forms of incentive-based compensation, please refer to SAP’s Enterprise Compensation Management documentation. Additionally, you can find more information on setting up exercisable awards in SAP’s PA-EC module documentation.