The Group provides benefits to employees (including executive directors) of the Group through share-based incentives. The following items refer
to the outstanding plans at September 30, 2019.
Incentive Shares
In 2017, certain key employees have been granted incentive shares, or the Co-Investment Shares, that
entitle participants to receive a cash bonus which they, at their option, may use to purchase a specified number of preferred shares in StoneCo Brasil which were then exchanged for common shares in DLP Par. These incentive shares are subject to a 10
years lock-up period and a discounted buy-back feature retained by the Group if the employee leaves prior to lockup expiration.
These incentive shares were exchanged for StoneCo Ltd. Class A common shares upon the consummation of the IPO, but remain with the
previous lock-up period.
Restricted share units
In September 2018, the Group granted new awards of restricted share units (RSUs). In addition, all outstanding Phantom Shares,
which were originally granted on December 1, 2017, were converted to RSU awards. These awards are equity classified, the majority of the awards are subject to performance conditions, and the related compensation expense will be recognized over
the vesting period. The Company issued 5,261,256 awards (including Phantom Shares converted to RSUs) as RSU, and, of which approximately 6% are vested until the IPO, 9% vest in 4 years, 18% vest in 5 years, 21% vest in 7 years, and 46% vest in 10
years.
In April 2019 in connection with the follow-on offering, the company accelerated the
vesting of 151,182 Class A common shares, net of withholding taxes, underlying RSU awards. This relates to the acceleration of certain awards to allow recipients to participate in the offering and/or to sell Class A common shares in the
open market on or around the closing of this offering.
In August 2019, the Group granted new 9,437 awards as RSUs and also cancelled
527,350 of the prior issue. These new awards granted are similar to the granted in September 2018, except for the vesting period that are vested 15% until 5 years, 20% until 7 years and 65% until 10 years.
Stock options
In
September 2018, the Group issued 135,198 awards as stock options, of which approximately 77% have exercise date in 5 years, 5% in 7 years and 18% in 10 years.
In August 2019 the Group granted new 5,160 awards, of which approximately 50% have exercise date in 3 years and 50% in 5 years. The group also
cancelled 105,588 awards of the previously issue.
The fair value of each stock option granted was estimated at the grant date based on
the Black-Scholes-Merton pricing model.
The total expense, including taxes and social charges, recognized for the programs for the nine
and three months period ended September 30, 2019 was R$ 49,831 and R$ 11,356, respectively.
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