Idaho 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 Idaho Stock Option and Stock Award Plan of American Stores Company is a comprehensive employee incentive program designed to reward and motivate employees by offering them the opportunity to purchase company stock or receive stock awards. The plan aims to align the interests of employees with the success and financial well-being of the company, fostering a sense of ownership and promoting dedication to achieving corporate goals. Under the Idaho Stock Option and Stock Award Plan, employees are granted options to purchase company stock at a specified exercise price. These stock options typically have a predetermined vesting period, during which employees gradually earn the right to exercise their options. Once vested, employees can choose to exercise their options, thereby purchasing company shares at the exercise price. This allows employees to benefit from potential increases in the company's stock price over time. Moreover, the Idaho Stock Option and Stock Award Plan may also include stock awards, which are direct grants of company stock to eligible employees. These stock awards may be subject to vesting conditions, requiring employees to fulfill specific employment or performance criteria before fully owning the granted shares. Similar to stock options, stock awards give employees the opportunity to participate in the company's growth and share in its success. The Idaho Stock Option and Stock Award Plan may encompass various types of stock options and awards, such as: 1. Non-Qualified Stock Options: These are stock options that do not meet specific IRS requirements and are subject to ordinary income tax when exercised. Non-qualified stock options provide flexibility in terms of granting and exercising options but do not have the same tax advantages as incentive stock options. 2. Incentive Stock Options: These stock options meet the criteria set by the IRS and offer potential tax advantages for employees. When exercised, employees may qualify for long-term capital gains tax treatment, potentially resulting in lower tax liabilities. However, certain limitations and holding period requirements must be met for the options to retain the favorable tax treatment. 3. Restricted Stock Awards: These stock awards are granted outright to employees, but with restrictions on their transferability and ownership. The restrictions typically lapse over time, allowing employees to gain full ownership of the awarded shares. Restricted stock awards are often used as a retention tool, encouraging employees to remain with the company for a specified period to fully benefit from their awards. 4. Performance-Based Stock Awards: These stock awards are contingent upon employees achieving predetermined performance criteria, such as meeting specific financial targets or reaching operational milestones. Performance-based stock awards motivate employees to maximize their efforts and contribute to the company's success, as the awards are directly tied to their performance outcomes. Overall, the Idaho Stock Option and Stock Award Plan of American Stores Company serves as an effective means to attract, retain, and incentivize employees, fostering a strong sense of commitment and dedication to the company's performance and growth. Through a combination of stock options and stock awards, employees can become true stakeholders in the organization's success, participating in its financial prosperity while solidifying their own financial future.

The Idaho Stock Option and Stock Award Plan of American Stores Company is a comprehensive employee incentive program designed to reward and motivate employees by offering them the opportunity to purchase company stock or receive stock awards. The plan aims to align the interests of employees with the success and financial well-being of the company, fostering a sense of ownership and promoting dedication to achieving corporate goals. Under the Idaho Stock Option and Stock Award Plan, employees are granted options to purchase company stock at a specified exercise price. These stock options typically have a predetermined vesting period, during which employees gradually earn the right to exercise their options. Once vested, employees can choose to exercise their options, thereby purchasing company shares at the exercise price. This allows employees to benefit from potential increases in the company's stock price over time. Moreover, the Idaho Stock Option and Stock Award Plan may also include stock awards, which are direct grants of company stock to eligible employees. These stock awards may be subject to vesting conditions, requiring employees to fulfill specific employment or performance criteria before fully owning the granted shares. Similar to stock options, stock awards give employees the opportunity to participate in the company's growth and share in its success. The Idaho Stock Option and Stock Award Plan may encompass various types of stock options and awards, such as: 1. Non-Qualified Stock Options: These are stock options that do not meet specific IRS requirements and are subject to ordinary income tax when exercised. Non-qualified stock options provide flexibility in terms of granting and exercising options but do not have the same tax advantages as incentive stock options. 2. Incentive Stock Options: These stock options meet the criteria set by the IRS and offer potential tax advantages for employees. When exercised, employees may qualify for long-term capital gains tax treatment, potentially resulting in lower tax liabilities. However, certain limitations and holding period requirements must be met for the options to retain the favorable tax treatment. 3. Restricted Stock Awards: These stock awards are granted outright to employees, but with restrictions on their transferability and ownership. The restrictions typically lapse over time, allowing employees to gain full ownership of the awarded shares. Restricted stock awards are often used as a retention tool, encouraging employees to remain with the company for a specified period to fully benefit from their awards. 4. Performance-Based Stock Awards: These stock awards are contingent upon employees achieving predetermined performance criteria, such as meeting specific financial targets or reaching operational milestones. Performance-based stock awards motivate employees to maximize their efforts and contribute to the company's success, as the awards are directly tied to their performance outcomes. Overall, the Idaho Stock Option and Stock Award Plan of American Stores Company serves as an effective means to attract, retain, and incentivize employees, fostering a strong sense of commitment and dedication to the company's performance and growth. Through a combination of stock options and stock awards, employees can become true stakeholders in the organization's success, participating in its financial prosperity while solidifying their own financial future.