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how to handle employee stock option (ESO) in SuccessFactors ?

pboulicaut
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What is the best practice to implement employee stock option (ESO) in Sap SuccessFactors ? is it thru Compensation module or Variable-Pay module ?

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NicolasC67
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Hi pboulicaut ,

Long-Term Incentives (Stock Options, Performance Shares, Free Shares, etc.) process is usually managed through the Compensation Module. The Variable Pay module is not meant to handle such a process. Variable Pay is solely meant to manage Short-Term Incentive plans, or Bonus Plans where individual, team and financial KPIs (goals) enter into play in the calculation of the final bonus payout of one employee.

However, having said that, an LTI campaign is pretty difficult to fully manage through the module. There is a Stock form template but lacks several features the Salary form template offers. SAP has not enhanced the Stock form template since a very long time.

pboulicaut
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i agree with you, never seen a single enhancement in these area in the last 10 years in all successfactor releases. Sap must consider it’s perfect or wait for a go-live to be at risk to think about it 🙂

NicolasC67
Participant
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Well, the only choice we have so far, is to manage the frustration of our customers and then use a salary form template and deviate its usage to fit with an LTI process.

Using custom MDF objects are also often require to publish LTI data for long term administration.