Texas Stock Option Plan of WSFS Financial Corporation

• Category: Corporations - Public - Stock Options
• State: Multi-State
• Control #: US-CC-18-352B
• Format: Word; Rich Text

Description

18-352B 18-352B . . . Stock Option Plan under which committee appointed by Board of Directors can grant (a) Incentive Stock Options, (b) Non-qualified Stock Options, (c) Stand-alone or Tandem Stock Appreciation Rights, and (d) Phantom Stock (which entitles recipient to receive in cash when share vests, an amount equal to sum of (x) fair market value of a share of stock on date when such share of Phantom Stock vests and (y) aggregate amount of cash dividends paid with respect to a share of stock during period between date share of Phantom Stock was granted and date on which such share vests). Committee has broad discretion at time of making Phantom Stock awards to impose conditions that must be satisfied in order for Phantom Stock to become vested

Texas Stock Option Plan is a type of employee compensation plan offered by WSFS Financial Corporation, a prominent financial services company based in the state of Texas. This plan allows eligible employees of WSFS Financial Corporation to purchase a predetermined number of company stocks at a specific price within a specific timeframe. It is designed to motivate and reward employees for their contributions to the company's success. Under the Texas Stock Option Plan, employees are granted the right to purchase company stocks, known as stock options, at a predetermined exercise price. The exercise price is typically set at the market price of the stock on the grant date or at a discount to encourage employee participation. The stock options are subject to a vesting period, which means they become exercisable in stages over a defined period of time, often years, to ensure employees remain with the company and contribute to its growth. There can be different types of Texas Stock Option Plan offered by WSFS Financial Corporation, tailored to meet the specific needs of the employees and align with the company's objectives. Some common types may include: 1. Non-Qualified Stock Options (Nests): These are stock options that do not meet the requirements of the Internal Revenue Code for special tax treatment. Nests are generally more flexible in terms of granting and exercising options but are subject to ordinary income tax on the difference between the exercise price and the fair market value of the stock at exercise. 2. Incentive Stock Options (SOS): SOS are stock options that meet certain criteria set forth by the Internal Revenue Code, offering potentially favorable tax treatment to employees. SOS are subject to specific holding requirements and tax regulations, which can allow employees to receive capital gains treatment upon the sale of the stock. 3. Restricted Stock Units (RSS): RSS are a form of equity-based compensation in which employees are granted the right to receive actual company stock at a future date. RSS typically vest over time and are settled by delivering company stock to employees upon vesting, subject to certain restrictions or performance-based conditions. The Texas Stock Option Plan is an essential tool for WSFS Financial Corporation to attract, retain, and incentivize talented employees. By offering employees the opportunity to become shareholders and benefit from the company's success, WSFS Financial Corporation promotes a culture of ownership and aligns the interests of employees with those of the company and shareholders.