Maryland Restricted Stock Plan of Sundstrand Corp.

• Category: Corporations - Public - Incentive Compensation Plans
• State: Multi-State
• Control #: US-CC-20-171D
• Format: Word; Rich Text

Description

20-171D 20-171D . . . Restricted Stock Plan under which a committee of Board of Directors sells shares of common stock to certain officers and senior employees at a price substantially below current market price. The shares are subject to following restrictions: (a) prohibition against any sale or other transfer and (b) obligation that participant (at corporation's option) must resell shares to corporation at price he paid for them if he ceases to be employed by corporation prior to expiration of from five to nine years after shares were sold to him, for reasons other than normal retirement, death, total disability or early retirement with consent of Board or committee. Except as otherwise provided, restrictions lapse as to 1/5 of aggregate number of participant's shares at expiration or each of fifth through ninth years after his purchase of such shares The Maryland Restricted Stock Plan (RSP) of Bandstand Corp. is a comprehensive equity compensation program offered by the company to eligible employees as a means to promote employee retention, reward performance, and align the interests of employees with those of the shareholders. This plan is subject to compliance with Maryland Corporation Law and applicable regulations. Under the Maryland RSP, eligible employees are granted restricted stock units (RSS) as a form of compensation. RSS is a type of stock-based award that gives employees the right to receive the company's stock at a predetermined price or upon meeting certain vesting conditions. The plan may consist of different types of RSS, each having specific features and conditions. One type of RSU commonly found in the Maryland RSP is time-based RSS. Time-based RSS grant employees the right to receive the company's stock after a certain period of service, typically with a graded or cliff vesting schedule. Graded vesting means the RSS vest gradually over time (e.g., 25% per year over four years), while cliff vesting means the RSS fully vest after a specific period (e.g., 100% after three years). Another type of RSU in the plan is performance-based RSS. This RSS is tied to the achievement of predefined performance goals or metrics, such as financial targets, individual or team-based objectives, or other performance indicators. The RSS may vest in whole or in part upon meeting these performance criteria, providing additional motivation for employees to contribute to the company's success. To ensure the RSS' value is directly correlated with the company's stock performance, the Maryland RSP may also include market-based RSS. This RSS vest based on predetermined market conditions, such as the company's stock price reaching a certain level or outperforming industry peers. Market-based RSS align the interests of the employees with those of the shareholders, as both benefit from the stock's positive performance. It's important to note that the specific features, vesting schedules, and conditions of the Maryland RSP may vary based on the employee's job level, position, and tenure within the organization. Additionally, the plan may undergo changes or updates over time to adapt to evolving market conditions, regulatory requirements, or business needs. Overall, the Maryland Restricted Stock Plan of Bandstand Corp. offers employees the opportunity to acquire company shares through RSS, allowing them to share in the company's success and potentially accumulate wealth over time. By using a variety of RSU types, the plan aims to motivate and retain talented employees while aligning their incentives with the long-term performance of the organization.

The Maryland Restricted Stock Plan (RSP) of Bandstand Corp. is a comprehensive equity compensation program offered by the company to eligible employees as a means to promote employee retention, reward performance, and align the interests of employees with those of the shareholders. This plan is subject to compliance with Maryland Corporation Law and applicable regulations. Under the Maryland RSP, eligible employees are granted restricted stock units (RSS) as a form of compensation. RSS is a type of stock-based award that gives employees the right to receive the company's stock at a predetermined price or upon meeting certain vesting conditions. The plan may consist of different types of RSS, each having specific features and conditions. One type of RSU commonly found in the Maryland RSP is time-based RSS. Time-based RSS grant employees the right to receive the company's stock after a certain period of service, typically with a graded or cliff vesting schedule. Graded vesting means the RSS vest gradually over time (e.g., 25% per year over four years), while cliff vesting means the RSS fully vest after a specific period (e.g., 100% after three years). Another type of RSU in the plan is performance-based RSS. This RSS is tied to the achievement of predefined performance goals or metrics, such as financial targets, individual or team-based objectives, or other performance indicators. The RSS may vest in whole or in part upon meeting these performance criteria, providing additional motivation for employees to contribute to the company's success. To ensure the RSS' value is directly correlated with the company's stock performance, the Maryland RSP may also include market-based RSS. This RSS vest based on predetermined market conditions, such as the company's stock price reaching a certain level or outperforming industry peers. Market-based RSS align the interests of the employees with those of the shareholders, as both benefit from the stock's positive performance. It's important to note that the specific features, vesting schedules, and conditions of the Maryland RSP may vary based on the employee's job level, position, and tenure within the organization. Additionally, the plan may undergo changes or updates over time to adapt to evolving market conditions, regulatory requirements, or business needs. Overall, the Maryland Restricted Stock Plan of Bandstand Corp. offers employees the opportunity to acquire company shares through RSS, allowing them to share in the company's success and potentially accumulate wealth over time. By using a variety of RSU types, the plan aims to motivate and retain talented employees while aligning their incentives with the long-term performance of the organization.