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

SAP Term: unvested awards

• Component: PA-EC

• Component Name: Enterprise Compensation Management

• Description: Unvested awards are awards that are not yet available for exercising, for example, awards that vest gradually.

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• Key Concepts: 
  Unvested awards are a type of compensation offered by employers to their employees. They are typically given in the form of stock options, restricted stock units, or performance shares. These awards are not immediately available to the employee, but rather vest over a period of time. This means that the employee must wait until the vesting period is over before they can access the award. 
  
  How to use it: 
  The SAP PA-EC Enterprise Compensation Management component allows employers to manage unvested awards for their employees. This includes setting up vesting schedules, tracking progress towards vesting, and managing the payout of awards once they have vested. It also allows employers to set up different types of awards and customize them according to their needs. 
  
  Tips & Tricks: 
  When setting up unvested awards in SAP PA-EC, it is important to ensure that the vesting schedule is clearly defined and communicated to employees. This will help ensure that employees understand when they will be able to access their awards and how much they will receive. It is also important to keep track of any changes in the vesting schedule, as this could affect when an employee can access their award. 
  
  Related Information: 
  For more information on unvested awards and how to manage them in SAP PA-EC, please refer to the SAP Help Portal or contact your local SAP representative.