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Employee share schemes (ESS), restricted stock units (RSUs), and employee stock purchase plans (ESPP) are a common way companies grant equity to employees — either as shares, options, or rights. Sharesight doesn't handle ESS grants automatically, but you can manually track them using a combination of features.

This page covers the most common scenarios and links to the relevant guides for each.

Understanding vesting

Most employee equity comes with a vesting schedule — a time lag between when shares or options are awarded and when you can act on them. Shares typically release in equal portions called tranches on a quarterly or annual schedule.

Until shares vest, you don't legally own them. It's worth tracking unvested shares in Sharesight so you can see their value and performance over time, but you should note that unvested shares may be forfeited if you leave the company before the vesting date.

Types of employee equity

Tracking RSUs

RSUs convert to ordinary shares at vesting. Record each tranche as it vests:

1. Open your portfolio. If you don'''t already hold the stock, click Add investments, search for it by ticker code and add it.
2. Go to Trades & income > Add trade or adjustment.
3. Trade type: Opening balance (if this is your first holding) or Buy (if you already hold the stock).
4. Trade date: The vesting date of each tranche.
5. Unit/price: The share price on the vesting date (your share registry or employer statement will have this).
6. Quantity: The number of shares vested in that tranche.
7. Click Add.

Repeat for each vesting tranche.

Tax note: RSUs are typically taxed as income at the vesting date, based on the share price at that time. The vested value usually forms your cost base for future CGT calculations. Confirm with your accountant before recording.

Tracking employee shares (ESS / ESPP)

If your ESS or ESPP results in you receiving shares directly, record them as an opening balance or buy trade:

1. Open your portfolio. If you don'''t already hold the stock, click Add investments, search for it by ticker code and add it.
2. Go to Trades & income > Add trade or adjustment.
3. Trade type: Opening balance (if this is your first holding) or Buy (if you already hold the stock).
4. Trade date: The date the shares were allocated or transferred to you.
5. Total cost base: The price you paid for the shares (if any). If shares were granted for free, enter $0. If purchased at a discount, enter the discounted price you actually paid — not the market value.
6. Quantity: The number of shares received.
7. Click Add.

Australian ESS tax note: Under Australian tax law, some ESS benefits are taxed as income in the year you receive them. The amount included in your assessable income may form part of your cost base. Consult your accountant or refer to the ATO'''s guidance on employee share schemes before recording your cost base.

Tracking employee stock options and performance rights

For options or rights that convert to shares upon exercise, see the full guide:

• How to record warrants and stock options in Sharesight — covers recording grants at $0, exercising options into shares, partial conversions, and recording forfeitures.

Corporate actions affecting your ESS holdings

Once you hold shares through an ESS, RSU, or ESPP, corporate actions apply to them in the same way as any other holding. Relevant guides:

• How Sharesight automatically handles corporate actions — dividends, splits, and consolidations that Sharesight processes automatically.
• Recording corporate actions and off-market transactions in Sharesight — for corporate actions you need to record manually, including capital returns, in-specie distributions, and off-market transfers.
• How to record a demerger (spin-off) in Sharesight
• How to record a rights issue, share purchase plan (SPP) or IPO in Sharesight

Tips for managing employee equity in Sharesight

Use separate portfolios for vested and unvested shares Consider maintaining two portfolios — one for vested shares you own outright, and one for unvested shares still subject to forfeiture. This keeps your actual net worth separate from shares you haven'''t yet earned.

Use the All Trades Report for tax documentation Sharesight'''s All Trades Report provides a full history of your share transactions, which can be useful when completing your tax return or providing records to your accountant.

Check your grant details before recording Confirm vested and unvested share counts, grant prices, and vesting dates from your share registry or employer equity platform (e.g. Computershare, Solium/Shareworks, or Morgan Stanley at Work) before entering trades in Sharesight.

Frequently asked questions

Can Sharesight track unvested shares? Yes — you can add unvested shares as a holding in Sharesight to monitor their value over time. There is no vesting schedule feature, so you'''ll need to manually record new tranches as they vest and any forfeitures if they are cancelled.

How do I record a forfeiture? If unvested shares or options are cancelled or forfeited, record a Sell at $0 to close the holding. This will generate a capital loss equal to any cost base you recorded. If the cost base was $0, no capital gain or loss is triggered.

How do I record an ESPP purchase? Record it as a Buy trade on the date of purchase, at the discounted price you paid (not the market value). Your cost base is the amount you actually paid.

What if my options or RSUs have no listed ticker? Options and RSUs that aren'''t listed on an exchange won'''t appear in Sharesight'''s security database. You can add them as a custom investment instead.

Further reading

• How to track employee stock plans — Sharesight blog
• ATO — Employee share schemes

Disclaimer

The guide above is a suggestion on how to record employee equity in Sharesight and is not financial or tax advice. ESS, RSU, and ESPP tax treatment can be complex and varies by country, scheme type, and individual circumstances. We advise you to consult your accountant or tax advisor before recording any employee equity holdings.