Skip to main content

Configure Equity Scenarios

Dianmarie
  • Updated

Equity scenarios help understand the potential future value of their equity. Configuring equity scenarios allows you as a people team to decide the following:

  • What is the range of possible multiples that we want our employees to be able to explore in the tool?
  • What milestones do we want to include to add context to possible outcomes?

Example equity scenarios

  • A scenario that represents the acquisition valuation of a competitor
  • A scenario that represents a target IPO valuation or a valuation of a competitor
  • A scenario based on if the company hits a 3-year target plan
  • A scenario based on if we outperform our plans

Employees can view the different equity scenarios on the Total Compensation page. 

Employee view

The milestones below the Equity scenarios graph are marked as circles on the slider bar. Employees can view different multiples by sliding the bar. When reaching a configured milestone, they can view additional detail included during configuration.

Below, the admin has defined the 1x, 10x, 12x, and 20x scenarios. 1x and 20x are the highest and lowest, making up the range of options employees can explore. In the 1x scenario, employees can read the additional context the admin has provided when the scenario is selected.

Example equity scenarios graph. The milestone scenario slider can be seen below the graph.

Configure equity scenarios

Admins must include at least two scenarios to enable equity scenarios for employees. Lattice uses the lowest and highest multiple scenarios as the endpoints of the scenario calculator. Although additional defined scenarios are optional, they are encouraged as an opportunity to provide context to ground milestones in real expectations or goals.

Note: Scenarios must be titled to publish. 

  1. Navigate to Admin > Compensation > Total Compensation > Equity scenarios > Set Up. 
  2. Click Add a new scenario.
  3. Fill out the following fields: 
    • Scenario name (visible to employees)
    • Multiple: Valuation multiple the scenario represents; Integers between 1-999 are accepted (visible to employees)
    • (Optional) Description: Additional context to help employees understand the scenario
  4. Click Add scenario.

Edit and remove equity scenarios

To edit or remove a scenario, click the ellipses (...) menu > Edit scenario or Delete scenario.

Related articles