Colorado Nonemployee Directors Stock Plan of Jacor Communications, Inc.

• Category: Corporations - Public - Stock Options
• State: Multi-State
• Control #: US-CC-18-282A
• Format: Word; Rich Text

Description

18-282A 18-282A . . . Non-employee Director Stock Plan under which Board of Directors can grant (a) Non-qualified Stock Options, (b) Restricted Stock, (c) Stock Appreciation Rights, (d) Performance Units, (e) Performance Shares, and (f) other stock units to Non-employee directors

The Colorado Nonemployee Directors Stock Plan is a compensation program designed for non-employee directors of Jacob Communications, Inc. This plan provides an opportunity for these directors to receive stock-based incentives as part of their overall compensation package. Under this plan, non-employee directors can be granted stock options, restricted stock units, or other forms of equity-based awards. These awards are typically subject to certain vesting requirements, meaning they become fully owned by the director over a specific period of time or upon the achievement of certain performance goals. The purpose of the Colorado Nonemployee Directors Stock Plan is to align the interests of the non-employee directors with those of the company's shareholders. By providing directors with equity-based incentives, the plan aims to motivate them to make decisions that will enhance the company's performance and increase shareholder value. This plan also helps in attracting and retaining experienced and talented individuals to serve on the board of directors. By offering stock-based awards, Jacob Communications, Inc. can attract directors who have a vested interest in the long-term success of the company, as their compensation is directly tied to the company's performance. The Colorado Nonemployee Directors Stock Plan may have different types of awards, such as: 1. Stock Options: These are the right to purchase a certain number of company shares at a predetermined price, known as the exercise price. Directors can exercise their options after they have vested and become fully owned. If the stock price increases over time, directors can benefit from the appreciation by purchasing the shares at a lower exercise price. 2. Restricted Stock Units (RSS): RSS are awards that represent the right to receive company shares at a future date. They typically have vesting requirements, and once vested, directors receive the shares or the cash equivalent of their value. RSS can give directors a sense of ownership and align their interests with shareholders. 3. Performance-Based Awards: In certain cases, the Colorado Nonemployee Directors Stock Plan may include performance-based awards. These awards are contingent on the achievement of specified performance goals, such as financial targets or market share growth. If the goals are met, directors receive the award in the form of stock or an equivalent cash payout. By implementing the Colorado Nonemployee Directors Stock Plan, Jacob Communications, Inc. ensures that its non-employee directors have a vested interest in the company's success. This can lead to better decision-making, increased shareholder value, and the attraction of top talent to serve on the board of directors.