Indiana Director stock program

• Category: Corporations - Public - Stock Options
• State: Multi-State
• Control #: US-CC-18-172
• Format: Word; Rich Text

Description

18-172 18-172 . . Director Stock Program which provides that, on first day of director's term, such director will be granted option to acquire 900 shares of common stock, and on first day of each subsequent year of director's term, he or she will be granted options to acquire 300 shares of common stock. Options are at fair market value on date of grant and are exercisable in full six months after date of grant. The Director Stock Program also provides that, on first day of director's term, he or she will be awarded right to purchase 450 shares of restricted stock, and on first day of the second and third year of such director's term, he or she will be awarded right to purchase 150 shares of restricted stock. Purchase price will be equal to par value of common stock

The Indiana Director Stock Program is a unique initiative designed to provide directors with an opportunity to invest in the growth of Indiana-based companies. This program allows eligible directors to purchase stocks or equity directly from the company they serve on the board of, thereby aligning their interests with the company's success. This stock program offers various benefits to both directors and the Indiana-based companies they are associated with. By participating in this program, directors become shareholders, which not only allows them to reap the financial rewards of the company's success but also fosters a deeper commitment to strategic decision-making leading to greater company growth. Additionally, the Indiana Director Stock Program helps companies attract and retain top-tier directors. By offering stock options, companies can create a compensation package that not only rewards board members but also encourages their active participation in achieving the company's long-term goals. There are different types of Indiana Director stock programs that companies may choose to implement, depending on their specific needs and objectives. Some common types include: 1. Restricted Stock: Under this program, participating directors are granted stocks that have certain restrictions, such as a vesting period or performance-based criteria. This type of stock ensures directors' long-term commitment and incentivizes them to contribute to the company's growth over time. 2. Stock Options: This type of program grants directors the right to purchase company stocks at a predetermined price within a specified timeframe. Stock options typically have an expiration date, motivating directors to make strategic decisions that enhance the company's value before the options become worthless. 3. Performance-Based Equity: Companies may choose to offer equity grants based on specific performance metrics, such as achieving certain revenue targets or increasing market share. This type of program aligns the interests of directors with the company's objectives and encourages them to actively contribute towards achieving those goals. 4. Equity Purchase Plans: In this program, eligible directors have the opportunity to purchase company stocks directly from the company at a discounted price. Equity purchase plans provide directors with an immediate ownership stake in the company, making them true shareholders and aligning their interests with long-term success. In summary, the Indiana Director Stock Program is a valuable tool for both companies and directors alike. By offering various types of stock programs, Indiana-based companies can attract talented directors, align their interests with the company's success, and foster a culture of long-term commitment and strategic decision-making.