Executive Stock Incentive Plan of Octo Limited

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Multi-State
Control #:
US-CC-20-225
Format:
Word; 
Rich Text
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Description

20-225 20-225 . . . Stock Incentive Plan under which corporation makes contributions to Stock Plan (to an independent trustee) in form of cash and common stock. All cash received by Trust is used to purchase common stock of corporation, either from corporation or on open market. At end of each year, committee designates participants in Stock Plan and allocates among them contributions for such year in such proportions as committee determines. Each participant is credited with his share of income and charged with his share of expenses of Trust for each year
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FAQ

An incentive stock option (ISO) is a corporate benefit that gives an employee the right to buy shares of company stock at a discounted price with the added benefit of possible tax breaks on the profit. The profit on qualified ISOs is usually taxed at the capital gains rate, not the higher rate for ordinary income.

An executive stock option is a contract that grants the right to buy a specified number of shares of the company's stock at a guaranteed "strike price" for a period of time, usually several years.

Executive stock options incentivize CEOs to preform at the highest level. These increases in compensationdriven by improved business performancewould not represent a transfer of wealth from shareholders to executives.

An incentive scheme basically involves monetary rewards, i.e., incentive pay but also includes non-monetary rewards. Incentives are variable rewards granted according to level of achievement of specific results. Incentives are payment for performance or payment by results.

They offer employees an opportunity to have ownership in the company they work for and feel more connected to the business as well as to their co-workers. They are a cost-effective company benefit that can help make employment packages more attractive.

Stock options are often issued as a part of a company's incentive program to the company's and its subsidiaries' key persons who are working on the company's projects. The purpose of the stock options is to give personnel a financial incentive to work hard to increase the company's shareholder value.

An incentive scheme basically involves monetary rewards, i.e., incentive pay but also includes non-monetary rewards. Incentives are variable rewards granted according to level of achievement of specific results. Incentives are payment for performance or payment by results.

The price at which the options may be "exercised" is usually the price of the company's stock on the date the options are granted. If the company performs well, the stock price will increase over the exercise price, giving the options value and rewarding the executive for his role in the company's success.

Stock Options When shares go up in value, executives can make a fortune from options. But when share prices fall, investors lose out while executives are no worse off. Indeed, some companies let executives swap old option shares for new, lower-priced shares when the company's shares fall in value.

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Executive Stock Incentive Plan of Octo Limited