This stock option plan provides employees with a way to gain ownership in the company for which they work. The plan addresses SARs, stock awards, dividends and divided equivalents, deferrals and settlements, and all other subject matter generally included in stock option plans.
The Wisconsin Employee Stock Option Plan (ESOP) is a program that is designed to provide eligible employees of Wisconsin-based companies with an opportunity to acquire ownership in their employer's company. The ESOP allows employees to purchase company stock at a predetermined price, usually below market value, either as a part of their compensation package or as an additional benefit. Sops are beneficial for both the company and its employees. For companies, the ESOP creates a sense of ownership and loyalty among employees, promotes productivity, and can also provide tax advantages. Employees, on the other hand, have the opportunity to become shareholders and benefit from the company's growth and success. In Wisconsin, there are different types of Sops available, each with its own features and benefits. Some common types include: 1. Non-Leveraged ESOP: In this type of ESOP, the company contributes shares of its stock to the plan, which are then allocated to employees based on a predetermined formula. The shares are held in a trust until an employee retires or leaves the company, at which point they can be sold back to the company or on the open market. 2. Leveraged ESOP: In a leveraged ESOP, the company borrows money to buy shares of its own stock, which are then contributed to the plan. The company repays the loan through tax-deductible contributions to the ESOP. As the loan is repaid, the shares are allocated to employees. This type of ESOP allows employees to acquire ownership without using their own funds. 3. Stock Bonus Plan: A stock bonus plan is similar to an ESOP, but instead of offering stock options, the company provides employees with actual shares of company stock as a bonus or additional compensation. These shares can be subject to certain vesting schedules and can be held or sold by employees. 4. Restricted Stock Units (RSS): RSS are a common form of equity compensation in which the company grants employees a certain number of units or rights to receive company shares in the future. The shares are subject to a vesting schedule and are usually distributed once certain conditions are met, such as the employee's continued employment or meeting performance targets. It is important to note that the specific details and provisions of the Wisconsin Employee Stock Option Plan can vary from company to company. Therefore, employees and employers should carefully review the plan documents and consult with professionals, such as lawyers or tax advisors, to ensure compliance with applicable laws and regulations. Para su conveniencia, debajo del texto en español le brindamos la versión completa de este formulario en inglés. For your convenience, the complete English version of this form is attached below the Spanish version.