What is 'exercising' in SAP PA-EC - Enterprise Compensation Management?

exercising - Overview

• Component: PA-EC

• Component Name: Enterprise Compensation Management

• Description: Exercising typically refers to stock options. Employees exercise their awards when they purchase stock at a predetermined price, that is, the price set on the grant date, irrespective of the stock price at the time they exercise their awards.

exercising - Details

• 
  Key Concepts: 
  Exercising is a feature of the SAP PA-EC Enterprise Compensation Management component. It allows users to convert their stock options into shares of the company’s stock. This process is also known as “exercising an option”. 
  
  How to use it: 
  In order to exercise an option, the user must first select the option they wish to exercise. Once selected, the user can then enter the number of shares they wish to purchase and the price they are willing to pay for them. The system will then calculate the total cost of the transaction and provide a confirmation page for the user to review before submitting their request. 
  
  Tips & Tricks: 
  When exercising an option, it is important to consider the current market value of the stock and any applicable taxes or fees that may be associated with the transaction. Additionally, users should be aware of any restrictions or limitations that may be in place regarding their ability to exercise their options. 
  
  Related Information: 
  For more information on exercising options in SAP PA-EC Enterprise Compensation Management, please refer to the official SAP documentation or contact your system administrator.