Ohio 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 Ohio Restricted Stock Plan of Bandstand Corp. is a comprehensive employee benefit program designed to reward employees of the company with shares of its stock. This plan operates within the jurisdiction of Ohio and is specifically tailored to meet the unique requirements and regulations imposed by the state. Under the Ohio Restricted Stock Plan, employees are granted restricted stock units (RSS) that are subject to certain conditions, such as a vesting period or performance-based milestones. This RSS represents a specific number of company shares, which are allocated to employees as a form of additional compensation, incentive, or retention tool. By participating in this plan, employees of Bandstand Corp. can acquire ownership in the company and benefit from its growth and success. However, until certain conditions are met, such as the completion of the vesting period, the shares remain restricted. The Ohio Restricted Stock Plan also offers various tax advantages for both the company and employees. An important aspect of these plans is that they align the interests of employees with those of the company's shareholders, encouraging employees to perform effectively and contribute to the success of Bandstand Corp. Additionally, the Ohio Restricted Stock Plan of Bandstand Corp. may have multiple variations or types, depending on the specific objectives and needs of the company. These different types may include: 1. Performance-based Restricted Stock Plan: This type of plan grants restricted stock units based on the achievement of predetermined performance goals or targets. It incentivizes employees to meet or exceed these objectives to unlock the full value of their shares. 2. Time-based Restricted Stock Plan: Under this variation, the vesting of restricted stock units is solely based on the completion of a specific time period. As employees accumulate additional service or tenure, their ownership of the shares gradually becomes unrestricted, encouraging longevity within the company. 3. Equity Incentive Plan: This plan extends beyond restricted stock units and may include other equity-based components, such as stock options or stock appreciation rights. It provides employees with a diverse range of ownership opportunities and aligns with their varied financial preferences and investment strategies. In conclusion, the Ohio Restricted Stock Plan of Bandstand Corp. is a beneficial employee compensation program that enables eligible employees to acquire ownership in the company through restricted stock units. This plan facilitates employee loyalty, motivation, and performance while adhering to the regulations and requirements set forth within Ohio.