Arizona Restricted Stock Plan of Sundstrand Corp.

• Category: Corporations - Public - Incentive Compensation Plans
• State: Multi-State
• Control #: US-CC-20-171D
• Format: Word; Rich Text

Description

20-171D 20-171D . . . Restricted Stock Plan under which a committee of Board of Directors sells shares of common stock to certain officers and senior employees at a price substantially below current market price. The shares are subject to following restrictions: (a) prohibition against any sale or other transfer and (b) obligation that participant (at corporation's option) must resell shares to corporation at price he paid for them if he ceases to be employed by corporation prior to expiration of from five to nine years after shares were sold to him, for reasons other than normal retirement, death, total disability or early retirement with consent of Board or committee. Except as otherwise provided, restrictions lapse as to 1/5 of aggregate number of participant's shares at expiration or each of fifth through ninth years after his purchase of such shares The Arizona Restricted Stock Plan of Bandstand Corp. is a comprehensive employee benefit program that allows eligible employees of the company to acquire and hold company stock in a restricted manner. This plan has been designed to provide long-term incentives and rewards to employees who contribute to the growth and success of Bandstand Corp. The plan emphasizes employee retention, motivation, and alignment of interests with the company's overall objectives. Under the Arizona Restricted Stock Plan, eligible employees are granted restricted stock units (RSS) as part of their compensation package. RSS represents a promise to deliver a set number of company shares in the future, subject to certain conditions being met. These conditions typically include a vesting period, performance targets, and continuous employment with Bandstand Corp. One key feature of this plan is that the restricted stock units are subject to substantial restrictions on transferability. This means that employees cannot freely sell or transfer their RSS until they are fully vested. Typically, vesting occurs over a specified period of time, encouraging employees to remain with the company and contribute to its long-term growth. Once the RSS have vested, employees have the option to convert them into actual company shares. This allows employees to become shareholders and benefit from the company's performance and stock price appreciation. Employees are often encouraged to retain their shares to further align their interests with those of the company. The Arizona Restricted Stock Plan of Bandstand Corp. also includes various types of restricted stock awards, such as performance-based RSS, market-based RSS, and time-based RSS. These different types of awards are typically granted to employees at different stages of their tenure or based on their specific roles and responsibilities within the organization. Performance-based RSS are granted to employees based on the achievement of predefined performance metrics, such as revenue growth, cost reduction, or market share targets. Market-based RSS, on the other hand, are tied to the company's stock performance relative to its peers or a specific market index. Time-based RSS are granted simply based on the employee's continued service for a specified period, often referred to as the vesting period. In summary, the Arizona Restricted Stock Plan of Bandstand Corp. is a robust employee benefit program that enables eligible employees to acquire and hold restricted stock units, which can later be converted into company shares. This plan serves as a crucial component of Bandstand Corp.'s overall compensation strategy, aiming to motivate and reward employees for their contributions while aligning their interests with the company's long-term objectives.

The Arizona Restricted Stock Plan of Bandstand Corp. is a comprehensive employee benefit program that allows eligible employees of the company to acquire and hold company stock in a restricted manner. This plan has been designed to provide long-term incentives and rewards to employees who contribute to the growth and success of Bandstand Corp. The plan emphasizes employee retention, motivation, and alignment of interests with the company's overall objectives. Under the Arizona Restricted Stock Plan, eligible employees are granted restricted stock units (RSS) as part of their compensation package. RSS represents a promise to deliver a set number of company shares in the future, subject to certain conditions being met. These conditions typically include a vesting period, performance targets, and continuous employment with Bandstand Corp. One key feature of this plan is that the restricted stock units are subject to substantial restrictions on transferability. This means that employees cannot freely sell or transfer their RSS until they are fully vested. Typically, vesting occurs over a specified period of time, encouraging employees to remain with the company and contribute to its long-term growth. Once the RSS have vested, employees have the option to convert them into actual company shares. This allows employees to become shareholders and benefit from the company's performance and stock price appreciation. Employees are often encouraged to retain their shares to further align their interests with those of the company. The Arizona Restricted Stock Plan of Bandstand Corp. also includes various types of restricted stock awards, such as performance-based RSS, market-based RSS, and time-based RSS. These different types of awards are typically granted to employees at different stages of their tenure or based on their specific roles and responsibilities within the organization. Performance-based RSS are granted to employees based on the achievement of predefined performance metrics, such as revenue growth, cost reduction, or market share targets. Market-based RSS, on the other hand, are tied to the company's stock performance relative to its peers or a specific market index. Time-based RSS are granted simply based on the employee's continued service for a specified period, often referred to as the vesting period. In summary, the Arizona Restricted Stock Plan of Bandstand Corp. is a robust employee benefit program that enables eligible employees to acquire and hold restricted stock units, which can later be converted into company shares. This plan serves as a crucial component of Bandstand Corp.'s overall compensation strategy, aiming to motivate and reward employees for their contributions while aligning their interests with the company's long-term objectives.