Arizona Stock Option and Stock Award Plan of American Stores Company

• Category: Corporations - Public - Stock Options
• State: Multi-State
• Control #: US-CC-18-347C
• Format: Word; Rich Text

Description

18-347C 18-347C . . . Stock Option and Stock Award Plan under which Compensation and Stock Option Committee can grant (a) Incentive Stock Options, (b) Non-qualified Stock Options, (c) Stock Appreciation Rights, (c) Restricted Stock Awards, (d) Performance Units (which are converted into cash or common stock upon satisfaction of performance goals established by Committee and which, depending on extent to which they are met, will determine number of Performance Units that will be earned by individual, and (e) Tax Offset Bonuses The Arizona Stock Option and Stock Award Plan of American Stores Company is a comprehensive employee benefit plan provided by the company to its employees. It offers various stock-related incentives and rewards to eligible individuals, encouraging their participation in the growth and success of the organization. The Arizona Stock Option Plan is designed to grant employees the right to purchase company stocks at a predetermined price within a specified timeframe. These options provide employees with an opportunity to acquire ownership in the company and benefit from its potential value appreciation over time. The plan aims to align the interests of employees with those of the shareholders, fostering a sense of ownership and dedication towards achieving long-term organizational goals. The Arizona Stock Award Plan, on the other hand, grants employees the opportunity to receive company stocks as a form of recognition or performance-based rewards. These awards are typically given to individuals who have demonstrated exceptional performance, contributed significantly to the company's growth, or achieved pre-defined milestones. The stock awards help foster employee loyalty, as they provide an additional financial stake in the organization's success. The different types of Arizona Stock Option and Stock Award Plans may include: 1. Non-Qualified Stock Options: These options are typically offered to employees and do not qualify for tax advantages. The option price is set at fair market value, and upon exercise, the employee may be subject to income tax on the difference between the option price and the stock's actual value. 2. Incentive Stock Options: These options are primarily offered to executives and key employees, providing potential tax advantages. To qualify, the option exercise price must be equal to or higher than the stock's fair market value at the time of grant. Incentive Stock Options offer favorable tax treatment, as the employee may only incur a capital gains tax upon selling the acquired stock if certain holding period requirements are met. 3. Restricted Stock Units (RSS): RSS are a form of stock award plan where the employee is granted a specific number of units, typically subject to a vesting schedule. Once vested, the RSS are converted into actual company shares. These awards help retain talented employees, as the vesting schedule encourages them to stay with the company over a predetermined period. 4. Performance Stock Units (Plus): Plus are stock awards linked to the achievement of specific performance goals, such as revenue targets, profitability ratios, or operational milestones. The number of shares granted to an employee is often contingent upon the extent to which these goals are met. Plus motivate employees to contribute significantly to the company's success, as the rewards are directly tied to their performance. Overall, the Arizona Stock Option and Stock Award Plan of American Stores Company is a robust and tailored employee benefit program that aims to attract, motivate, and retain talented individuals. It offers various forms of stock-based incentives and rewards, aligning employee interests with the company's long-term growth objectives.

The Arizona Stock Option and Stock Award Plan of American Stores Company is a comprehensive employee benefit plan provided by the company to its employees. It offers various stock-related incentives and rewards to eligible individuals, encouraging their participation in the growth and success of the organization. The Arizona Stock Option Plan is designed to grant employees the right to purchase company stocks at a predetermined price within a specified timeframe. These options provide employees with an opportunity to acquire ownership in the company and benefit from its potential value appreciation over time. The plan aims to align the interests of employees with those of the shareholders, fostering a sense of ownership and dedication towards achieving long-term organizational goals. The Arizona Stock Award Plan, on the other hand, grants employees the opportunity to receive company stocks as a form of recognition or performance-based rewards. These awards are typically given to individuals who have demonstrated exceptional performance, contributed significantly to the company's growth, or achieved pre-defined milestones. The stock awards help foster employee loyalty, as they provide an additional financial stake in the organization's success. The different types of Arizona Stock Option and Stock Award Plans may include: 1. Non-Qualified Stock Options: These options are typically offered to employees and do not qualify for tax advantages. The option price is set at fair market value, and upon exercise, the employee may be subject to income tax on the difference between the option price and the stock's actual value. 2. Incentive Stock Options: These options are primarily offered to executives and key employees, providing potential tax advantages. To qualify, the option exercise price must be equal to or higher than the stock's fair market value at the time of grant. Incentive Stock Options offer favorable tax treatment, as the employee may only incur a capital gains tax upon selling the acquired stock if certain holding period requirements are met. 3. Restricted Stock Units (RSS): RSS are a form of stock award plan where the employee is granted a specific number of units, typically subject to a vesting schedule. Once vested, the RSS are converted into actual company shares. These awards help retain talented employees, as the vesting schedule encourages them to stay with the company over a predetermined period. 4. Performance Stock Units (Plus): Plus are stock awards linked to the achievement of specific performance goals, such as revenue targets, profitability ratios, or operational milestones. The number of shares granted to an employee is often contingent upon the extent to which these goals are met. Plus motivate employees to contribute significantly to the company's success, as the rewards are directly tied to their performance. Overall, the Arizona Stock Option and Stock Award Plan of American Stores Company is a robust and tailored employee benefit program that aims to attract, motivate, and retain talented individuals. It offers various forms of stock-based incentives and rewards, aligning employee interests with the company's long-term growth objectives.