Puerto Rico Proposal to Approve Nonemployee Directors' Retainer Fee Plan with Copy of Plan: Introduction: The Puerto Rico Proposal to Approve Nonemployee Directors' Retainer Fee Plan with Copy of Plan aims to establish a fair and comprehensive compensation package for nonemployee directors serving on corporate boards in Puerto Rico. This proposal is designed to attract highly skilled and experienced professionals and uphold corporate governance standards. Description: The proposed Nonemployee Directors' Retainer Fee Plan in Puerto Rico outlines the remuneration structure and benefits for nonemployee directors serving on boards of companies. The plan emphasizes the importance of recognizing the valuable contributions made by these directors towards decision-making processes, strategy development, and corporate oversight. Key Features: 1. Compensation Structure: — The plan outlines a tiered remuneration structure based on the responsibilities and time commitment required to fulfill director's duties effectively. — Compensation includes a base retainer fee, meeting fees, and additional fees for serving on board committees. — The plan ensures a competitive and market-driven compensation package to attract top talent. 2. Equity-Based Compensation: — To align nonemployee directors' interests with the company's long-term success, the plan proposes equity-based compensation options. — Equity grants, such as stock options or restricted stock units, will be subject to vesting periods and performance conditions. — This approach promotes a sense of ownership and accountability among nonemployee directors. 3. Benefits and Perquisites: — The plan includes provisions for reimbursing nonemployee directors for reasonable expenses incurred while fulfilling their duties. — It also offers benefits, such as access to corporate amenities, director liability insurance, and educational opportunities to enhance director skills. — These benefits help attract high-caliber individuals and ensure their seamless engagement. 4. Governance and Disclosure: — The proposal emphasizes transparency and governance by detailing the terms and conditions of the retainer fee plan. — All components of the remuneration package will be clearly defined in a written agreement with each nonemployee director. — Compliance with regulatory requirements and disclosure of director compensation will be monitored and reported regularly. Types of Nonemployee Directors' Retainer Fee Plans: 1. One-Time Fee Plan: — This type of plan offers a lump sum payment to nonemployee directors annually, irrespective of their attendance or participation in board activities. — It is commonly used when directors' roles are primarily advisory or ceremonial, with minimal involvement in strategic decision-making. 2. Meeting-Based Fee Plan: — Under this plan, nonemployee directors receive compensation based on their attendance and active participation in board meetings. — Directors are paid on a per-meeting basis, ensuring their commitment and engagement in the decision-making processes. 3. Hybrid Fee Plan: — This plan combines elements of both the one-time fee and meeting-based fee structures. — Directors receive a base retainer fee and additional compensation for each meeting attended or committee served on. — The hybrid plan offers flexibility while rewarding directors for their time investment and ongoing involvement. Conclusion: The Puerto Rico Proposal to Approve Nonemployee Directors' Retainer Fee Plan with Copy of Plan sets a framework to compensate nonemployee directors adequately and fairly for their valuable contributions. By establishing a robust compensation structure, Puerto Rico aims to attract experienced professionals with diverse backgrounds and skills to drive corporate governance excellence and ensure sustained growth in the business environment.