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At first glance, it's not hard to understand why a company would implement a leave of absence (LOA) policy for its employee stock plans. It seems a given that the stock of employees who are not working should not vest at the same rate as the stock of employees who are working.

However, it's unlikely that a company's Board of Directors is aware of the effort it can take for an equity manager to enforce and administer such a policy. Companies do not always realize that well-intentioned LOA policies can create challenges for equity administrators, and can even discriminate against certain employees.

What is your company doing?

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