Massachusetts Directors' Stock Deferral Plan for Norwest Corp.

• Category: Corporations - Public - Incentive Compensation Plans
• State: Multi-State
• Control #: US-CC-20-111C
• Format: Word; Rich Text

Description

20-111C 20-111C . . . Directors' Stock Deferral Plan which allow participants to defer to later year certain compensation which would otherwise be includable in income for tax purposes in year in which it would have been paid. The Plans also provide for investment of such compensation in deferred stock account in form of shares of corporation common stock

The Massachusetts Directors' Stock Deferral Plan for Nor west Corp. is a program designed to provide directors of the company with the option to defer the receipt of their director fees and instead receive shares of Nor west Corp. stock. This plan allows directors to have more flexibility in managing their compensation and align their financial interests with the long-term performance of the company. The Massachusetts Directors' Stock Deferral Plan offers various options for directors to choose from, depending on their individual preferences and financial goals. These options include: 1. Deferred Stock Units: Directors can elect to receive their fees in the form of deferred stock units. Under this option, the value of the fees is converted into an equivalent number of Nor west Corp. stock units, which are then credited to the director's account. The stock units grow in value based on the performance of the company's stock over time. 2. Dividend Reinvestment: Directors may also choose to reinvest the dividends earned from their deferred stock units back into additional shares of Nor west Corp. stock. This allows directors to compound their investment and potentially increase their ownership stake in the company. 3. Payment Timing: The plan provides directors with the flexibility to choose the timing of their fee payments, allowing them to defer their fees for a specified period or until a specific event occurs, such as retirement or termination of service as a director. 4. Lump Sum or Installments: Directors can opt to receive their deferred stock units and accumulated dividends in a lump sum payment at a later date, or they can choose to receive the funds in periodic installments over a specified period. It is important to note that the Massachusetts Directors' Stock Deferral Plan for Nor west Corp. is subject to certain rules and regulations outlined by the state of Massachusetts. Directors should consult with their legal and financial advisors to understand the potential tax and legal implications of participating in the plan. Keywords: Massachusetts Directors' Stock Deferral Plan, Nor west Corp., directors, fees, compensation, stock units, stock deferral, deferred stock units, dividends, dividend reinvestment, payment timing, lump sum, installments, retirement, termination of service.