The purpose of the non-employee director stock option plan is to attract and retain highly qualified people who are not employees of the company or any of its subsidiaries to serve as non-employee directors of the company, and to encourage non-employee directors to own shares of the company's common stock.
The Wake North Carolina Nonemployee Director Stock Option Plan is a comprehensive compensation program offered to nonemployee directors who serve on the board of directors of companies located in Wake, North Carolina. This plan is designed to attract and retain qualified professionals, align their interests with the company's shareholders, and reward them for their valuable insights and contributions to the organization. Under this plan, nonemployee directors are granted stock options, which provide them with the right to purchase company stock at a predetermined price within a specified timeframe. These options serve as a form of incentive and enable directors to share in the company's success. By offering stock options, companies aim to motivate directors to work towards enhancing shareholder value and foster a sense of ownership among these key decision-makers. The Wake North Carolina Nonemployee Director Stock Option Plan may include different types of stock options, each with its own unique features. Some commonly offered types include: 1. Non-Qualified Stock Options (SOS): These are the most traditional type of stock options granted to nonemployee directors. SOS allow directors to purchase company stock at a predetermined price, known as the exercise price. Directors can exercise their options at any time within a predetermined period, typically after a vesting period has elapsed. 2. Incentive Stock Options (SOS): This type of stock option provides certain tax advantages compared to SOS, as they may qualify for preferential tax treatment. SOS are subject to specific rules and restrictions set forth by the Internal Revenue Code. Directors can later sell the purchased shares and potentially benefit from favorable tax treatment, provided they meet certain holding requirements. 3. Restricted Stock Units (RSS): While not technically stock options, RSS are often included within the Wake North Carolina Nonemployee Director Stock Option Plan. RSS represents a promise to deliver company stock to directors at a future date or upon the occurrence of certain conditions. Once vested, directors receive the equivalent value of company shares. 4. Performance-Based Stock Options: Some companies may offer performance-based stock options to nonemployee directors. These options are tied to specific performance goals, such as financial targets, stock price performance, or other predetermined metrics. If the performance criteria are achieved, directors are granted additional stock options, providing an additional layer of motivation and reward for their contributions towards achieving strategic objectives. The Wake North Carolina Nonemployee Director Stock Option Plan serves as a key component of the overall compensation package for nonemployee directors. It enhances the company's ability to attract and retain experienced individuals in governance roles while aligning their interests with long-term shareholder value creation. By offering diverse types of stock options, companies can tailor the plan to suit the specific needs and goals of their nonemployee directors.The Wake North Carolina Nonemployee Director Stock Option Plan is a comprehensive compensation program offered to nonemployee directors who serve on the board of directors of companies located in Wake, North Carolina. This plan is designed to attract and retain qualified professionals, align their interests with the company's shareholders, and reward them for their valuable insights and contributions to the organization. Under this plan, nonemployee directors are granted stock options, which provide them with the right to purchase company stock at a predetermined price within a specified timeframe. These options serve as a form of incentive and enable directors to share in the company's success. By offering stock options, companies aim to motivate directors to work towards enhancing shareholder value and foster a sense of ownership among these key decision-makers. The Wake North Carolina Nonemployee Director Stock Option Plan may include different types of stock options, each with its own unique features. Some commonly offered types include: 1. Non-Qualified Stock Options (SOS): These are the most traditional type of stock options granted to nonemployee directors. SOS allow directors to purchase company stock at a predetermined price, known as the exercise price. Directors can exercise their options at any time within a predetermined period, typically after a vesting period has elapsed. 2. Incentive Stock Options (SOS): This type of stock option provides certain tax advantages compared to SOS, as they may qualify for preferential tax treatment. SOS are subject to specific rules and restrictions set forth by the Internal Revenue Code. Directors can later sell the purchased shares and potentially benefit from favorable tax treatment, provided they meet certain holding requirements. 3. Restricted Stock Units (RSS): While not technically stock options, RSS are often included within the Wake North Carolina Nonemployee Director Stock Option Plan. RSS represents a promise to deliver company stock to directors at a future date or upon the occurrence of certain conditions. Once vested, directors receive the equivalent value of company shares. 4. Performance-Based Stock Options: Some companies may offer performance-based stock options to nonemployee directors. These options are tied to specific performance goals, such as financial targets, stock price performance, or other predetermined metrics. If the performance criteria are achieved, directors are granted additional stock options, providing an additional layer of motivation and reward for their contributions towards achieving strategic objectives. The Wake North Carolina Nonemployee Director Stock Option Plan serves as a key component of the overall compensation package for nonemployee directors. It enhances the company's ability to attract and retain experienced individuals in governance roles while aligning their interests with long-term shareholder value creation. By offering diverse types of stock options, companies can tailor the plan to suit the specific needs and goals of their nonemployee directors.
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.
