18-276 18-276 . . . Director Incentive Compensation Plan under which eligible directors are granted automatic, nondiscretionary annual awards of 100 shares of common stock to each eligible director at no cost to director upon election or re-election by stockholders. The Board may amend award formula to no greater than 500 shares per year per director
The Michigan Director Incentive Compensation Plan is a structured program designed to reward directors in various industries based on their performance and contributions to the organization's success. It aims to align the interests of directors with the long-term goals of the company while motivating them to enhance performance, maximize shareholder value, and drive growth. The plan typically includes both short-term and long-term incentives, which are offered in addition to the base salary. These incentives are intended to encourage directors to achieve specific objectives or milestones that are critical to the company's success. The specifics of the plan may vary depending on the industry, company size, and other relevant factors. In Michigan, there are several types of Director Incentive Compensation Plans that companies may implement, such as: 1. Performance-Based Cash Bonus: This type of plan provides directors with a cash bonus based on the achievement of pre-determined performance targets, such as financial goals, operational efficiency, or market share growth. The cash bonus is typically a percentage of the director's base salary and can vary based on the degree of goal attainment. 2. Equity-Based Incentives: Many companies offer equity-based incentives, such as stock options, restricted stock units (RSS), or performance shares, to directors. These incentives provide directors with an ownership stake in the company, aligning their interests with shareholders. The value of these equity-based incentives is tied to the company's stock price or specific performance metrics. 3. Deferred Compensation Plans: These plans allow directors to defer a portion of their annual compensation into a separate account, which accrues interest until a specified future date, usually after retirement or a predefined duration. Directors can potentially benefit from tax advantages while deferring income to a later period when they may be in a lower tax bracket. 4. Non-Cash Perquisites: Some Director Incentive Compensation Plans offer non-cash perquisites such as access to company-owned vehicles, club memberships, executive retirement plans, or other fringe benefits. These perks are meant to enhance the director's overall compensation package and provide additional incentives for their continued dedication and loyalty to the organization. It's important for companies to carefully design and administer their Michigan Director Incentive Compensation Plans to ensure they promote ethical behavior, align with the company's culture and values, and comply with any applicable regulations or legal requirements.
The Michigan Director Incentive Compensation Plan is a structured program designed to reward directors in various industries based on their performance and contributions to the organization's success. It aims to align the interests of directors with the long-term goals of the company while motivating them to enhance performance, maximize shareholder value, and drive growth. The plan typically includes both short-term and long-term incentives, which are offered in addition to the base salary. These incentives are intended to encourage directors to achieve specific objectives or milestones that are critical to the company's success. The specifics of the plan may vary depending on the industry, company size, and other relevant factors. In Michigan, there are several types of Director Incentive Compensation Plans that companies may implement, such as: 1. Performance-Based Cash Bonus: This type of plan provides directors with a cash bonus based on the achievement of pre-determined performance targets, such as financial goals, operational efficiency, or market share growth. The cash bonus is typically a percentage of the director's base salary and can vary based on the degree of goal attainment. 2. Equity-Based Incentives: Many companies offer equity-based incentives, such as stock options, restricted stock units (RSS), or performance shares, to directors. These incentives provide directors with an ownership stake in the company, aligning their interests with shareholders. The value of these equity-based incentives is tied to the company's stock price or specific performance metrics. 3. Deferred Compensation Plans: These plans allow directors to defer a portion of their annual compensation into a separate account, which accrues interest until a specified future date, usually after retirement or a predefined duration. Directors can potentially benefit from tax advantages while deferring income to a later period when they may be in a lower tax bracket. 4. Non-Cash Perquisites: Some Director Incentive Compensation Plans offer non-cash perquisites such as access to company-owned vehicles, club memberships, executive retirement plans, or other fringe benefits. These perks are meant to enhance the director's overall compensation package and provide additional incentives for their continued dedication and loyalty to the organization. It's important for companies to carefully design and administer their Michigan Director Incentive Compensation Plans to ensure they promote ethical behavior, align with the company's culture and values, and comply with any applicable regulations or legal requirements.