Delaware 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 Delaware Stock Option and Stock Award Plan of American Stores Company is a company benefit or compensation plan that grants employees the opportunity to purchase company stock at a predetermined price or receive stock awards as a form of reward. This plan is primarily designed to attract, motivate, and retain talented employees by offering them the chance to become shareholders and benefit from the company's financial success. Under the Delaware Stock Option and Stock Award Plan, employees are provided with stock options, which grant them the right to purchase a specific number of company shares within a defined timeframe at a predetermined price, known as the exercise price. The exercise price is typically set at the fair market value of the stock on the grant date. This feature allows employees to potentially profit from any future increase in the company's stock price. Another aspect of the plan is the stock award provision. Instead of granting options, the company may choose to directly award employees with shares of company stock. These stock awards may have certain vesting requirements, meaning employees may need to fulfill specific conditions such as remaining with the company for a certain period of time before gaining full ownership of the awarded shares. This approach encourages employee loyalty and long-term commitment to the organization. The Delaware Stock Option and Stock Award Plan of American Stores Company may consist of several types of options and awards, tailored to meet various employee needs and goals. Some different types may include: 1. Incentive Stock Options (SOS): SOS are granted to employees as a tax-advantaged option, allowing them to potentially benefit from preferential tax treatment upon exercising the options. These options are subject to various IRS rules and regulations. 2. Non-Qualified Stock Options (Nests): Unlike SOS, Nests do not qualify for preferential tax treatment, but they offer more flexibility in terms of who can receive them. Nests are often granted to executives or employees who don't meet the requirements for SOS. 3. Restricted Stock Units (RSS): RSS represent a promise to deliver company stock to employees upon the satisfaction of certain vesting conditions. These awards have no exercise price and are typically subject to a vesting schedule or performance conditions. 4. Performance Shares: Performance shares are granted to employees based on the achievement of specified performance goals or milestones determined by the company. These shares serve as an additional incentive to motivate employees to drive exceptional performance. 5. Stock Appreciation Rights (SARS): SARS are similar to stock options but do not require employees to purchase company stock. Instead, they provide employees with the right to receive cash or company stock based on the appreciation in the stock price over a specific period. The Delaware Stock Option and Stock Award Plan of American Stores Company aims to align the interests of employees with those of shareholders, creating a sense of ownership and commitment. It serves as a powerful tool to enhance employee motivation, retention, and overall productivity by sharing the financial success of the company with its workforce.

The Delaware Stock Option and Stock Award Plan of American Stores Company is a company benefit or compensation plan that grants employees the opportunity to purchase company stock at a predetermined price or receive stock awards as a form of reward. This plan is primarily designed to attract, motivate, and retain talented employees by offering them the chance to become shareholders and benefit from the company's financial success. Under the Delaware Stock Option and Stock Award Plan, employees are provided with stock options, which grant them the right to purchase a specific number of company shares within a defined timeframe at a predetermined price, known as the exercise price. The exercise price is typically set at the fair market value of the stock on the grant date. This feature allows employees to potentially profit from any future increase in the company's stock price. Another aspect of the plan is the stock award provision. Instead of granting options, the company may choose to directly award employees with shares of company stock. These stock awards may have certain vesting requirements, meaning employees may need to fulfill specific conditions such as remaining with the company for a certain period of time before gaining full ownership of the awarded shares. This approach encourages employee loyalty and long-term commitment to the organization. The Delaware Stock Option and Stock Award Plan of American Stores Company may consist of several types of options and awards, tailored to meet various employee needs and goals. Some different types may include: 1. Incentive Stock Options (SOS): SOS are granted to employees as a tax-advantaged option, allowing them to potentially benefit from preferential tax treatment upon exercising the options. These options are subject to various IRS rules and regulations. 2. Non-Qualified Stock Options (Nests): Unlike SOS, Nests do not qualify for preferential tax treatment, but they offer more flexibility in terms of who can receive them. Nests are often granted to executives or employees who don't meet the requirements for SOS. 3. Restricted Stock Units (RSS): RSS represent a promise to deliver company stock to employees upon the satisfaction of certain vesting conditions. These awards have no exercise price and are typically subject to a vesting schedule or performance conditions. 4. Performance Shares: Performance shares are granted to employees based on the achievement of specified performance goals or milestones determined by the company. These shares serve as an additional incentive to motivate employees to drive exceptional performance. 5. Stock Appreciation Rights (SARS): SARS are similar to stock options but do not require employees to purchase company stock. Instead, they provide employees with the right to receive cash or company stock based on the appreciation in the stock price over a specific period. The Delaware Stock Option and Stock Award Plan of American Stores Company aims to align the interests of employees with those of shareholders, creating a sense of ownership and commitment. It serves as a powerful tool to enhance employee motivation, retention, and overall productivity by sharing the financial success of the company with its workforce.