District of Columbia Stock Option Plan of Stewart Information Services Corp. for Region Managers

• Category: Corporations - Public - Stock Options
• State: Multi-State
• Control #: US-CC-18-365B
• Format: Word; Rich Text

Description

18-365B 18-365B . . . Stock Option Plan for Region Managers under which Compensation Committee may grant Incentive and Non-qualified Stock Options to full-time key employees who are employed at time of grant as Region Managers or equivalent position. In determining number of shares subject to an option granted in any given year to a particular Region Manager, Committee shall consider whether (a) pretax profits in Region Manager's territory have increased over prior year, (b) cash received by corporation from Region Manager's territory has increased over prior year, (c) percentage of claim dollars to revenues in Region Manager's territory has decreased over prior year, (d) delinquencies have decreased or maintained at zero level from prior year, (e) market share has increased in Region Manager's territory over prior year, (f) Region Manager has made efforts to expand territory through expansion of markets and/or sale of new products, (g) Region Manager's territory complies with corporation policy relating to agency visits, audits, automation, training, and benefit participation, and (h) Region Manager incorporates corporation's goals and strategies into goals for his territory

The District of Columbia Stock Option Plan is a comprehensive equity compensation program designed specifically for Region Managers employed by Stewart Information Services Corp. This plan aims to incentivize and reward high-performing professionals within the company by granting them stock options. Stock options are financial instruments that provide employees with the opportunity to purchase company shares at a predetermined price within a specified timeframe. By offering this benefit, Stewart Information Services Corp. aims to align the interests of Region Managers with the company's success, facilitating their engagement and motivation to drive positive results. The District of Columbia Stock Option Plan offers several variations that cater to the diverse needs and preferences of Region Managers. These options include: 1. Non-Qualified Stock Options (Nests): Nests are the most common type of stock option granted to Region Managers. They provide flexibility in terms of vesting schedules and exercise prices. Nests are subject to standard income tax regulations, and any gains realized upon exercise are taxed as ordinary income. 2. Incentive Stock Options (SOS): SOS offer a tax-advantaged option to Region Managers. They are subject to specific rules set by the Internal Revenue Code. ISO holders often benefit from favorable long-term capital gains tax rates on the spread between the exercise price and sale price, assuming they meet specific holding requirements. 3. Restricted Stock Units (RSS): RSS represent a promise to deliver shares of Stewart Information Services Corp.'s stock to Region Managers at a future date. RSS have vesting schedules tied to performance metrics or years of service. Once the RSS vest, the employee receives the shares directly. 4. Performance Stock Units (Plus): Plus offer Region Managers the opportunity to acquire shares based on predetermined performance goals set by the company. These performance metrics may include factors like revenue growth, market share expansion, or other key performance indicators. Plus encourage managers to actively contribute to the company's success to earn their stock awards. Stewart Information Services Corp. recognizes the importance of providing attractive and competitive equity compensation options to Region Managers. By delivering these District of Columbia Stock Option Plan variations, the company aims to foster a motivated workforce, enhance retention, and drive sustainable business growth.