The takeaway

Your base pay works together with Okta’s bonus, equity grants (aka, “long-term incentives” or “RSUs”), and employee stock purchase plan (ESPP) to provide you with a highly competitive pay and ownership opportunity. It’s how you share in the success of the company you’re helping to build and grow.

Your performance

We’re working together to create value—for our shareholders, our customers, our communities, and ourselves. The company’s and your own performance drive decisions about incentives, like your bonus opportunity and equity grants. We’re also focused on building productive and healthy relationships between you and your manager and within our teams.

Vision, Methods and Targets (VMTs)

To achieve Okta’s vision as we grow and build the company, we want to make sure our strategy is transparent and accessible to everyone at Okta. We do this through the “VMTs,” which stands for Vision, Methods and Targets. You can learn more through The Landing.

The VMTs serve as Okta’s framework for clearly stating our company strategy and cascading it up, down, and across the company. All of our operations align with the company’s overarching VMTs, and your “personal VMTs” and performance should as well.

Okta Alignment Reviews (OARs) process

The Okta Alignment Reviews (OARs) process creates a quarterly opportunity for employees and their managers to have a two-way conversation—that includes actionable feedback—to support success in achieving personal VMTs.

In fact, OARs keeps the conversation going:

  • You’ll talk with your manager at least once a quarter about setting meaningful goals that further Okta’s mission and your personal path.
  • You’ll provide “Start, Stop, and Continue” feedback to your manager, and you’ll receive “Start, Stop, and Continue” feedback from your manager as well.
     
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Employee Stock Purchase Program (ESPP)

You have an opportunity to benefit from the company’s growth and the shareholder value your work helps to create. By choosing to participate in the employee stock purchase plan (ESPP), eligible employees can invest directly in the company—by purchasing shares of Okta stock at a discount.

How it works

Through simple after-tax payroll deductions, you can purchase shares of Okta stock at a minimum 15% discount twice a year.

You decide if you’d like to participate, and how much you’d like to contribute—anywhere from 1% to 15% of your eligible pay. Certain limits apply.

Eligible employees have two opportunities each year to enroll May 15 - 31 (for the June offering period) and November 15 - 30 (for the December offering period). You’re eligible to enroll in the ESPP if:

  • You’re employed as of the 3rd Monday of May or November (the months before the beginning of the relevant offering period).
  • You’re regularly scheduled to work at least twenty (20) hours per week and five (5) months per calendar year.

Questions? Go to the Okta Equity page on The Landing or email Stock@okta.com.

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Incentives

Here’s your true opportunity to share in the value you’re building—aligned directly with our shareholders’ interest in Okta’s long-term success. 
 

Long-Term Incentives (RSUs)

Most employees are eligible for annual equity grants. This is a form of non-cash compensation that gives you a piece of company ownership. Okta’s equity grants are made in the form of Restricted Stock Units (RSUs) at no cost to you.

How it works

For each grant, Okta converts the value into a number of RSUs based on the monthly average closing price of one share of Okta in the month prior to the grant.

Employees are eligible to receive equity grants as a new hire, then annually.

You must not have engaged in conduct inconsistent with ethical or other performance standards prior to a grant.

Cash Incentive Bonus Program

Okta’s bonus can add to your cash compensation each year. It’s designed to reward you for your hard work and contributions, while tying to Okta’s performance, as well.

How it works

Okta sets your bonus target as a percentage of your base pay, based on your job level.

The company’s performance against pre-established objectives determines whether Okta will pay bonuses each year—there is no guarantee. Company performance objectives may include achievement of annual revenue targets, net annual recurring revenue, bookings, and EBITDA.

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