Virgin Islands Directors' Stock Deferral Plan for Norwest Corp.

• Category: Corporations - Public - Incentive Compensation Plans
• State: Multi-State
• Control #: US-CC-20-111C
• Format: Word; Rich Text

Description

20-111C 20-111C . . . Directors' Stock Deferral Plan which allow participants to defer to later year certain compensation which would otherwise be includable in income for tax purposes in year in which it would have been paid. The Plans also provide for investment of such compensation in deferred stock account in form of shares of corporation common stock

The Virgin Islands Directors' Stock Deferral Plan for Nor west Corp. is a comprehensive and flexible compensation strategy offered to directors of Nor west Corp. This plan allows directors to defer a portion of their annual compensation in the form of company stock, providing them with valuable long-term investment opportunities. Under this plan, directors have the option to defer a percentage of their cash compensation and receive an equivalent value in stock. By doing so, they can delay the receipt of taxable income until a later date, providing potential tax advantages. This deferred stock is held in an account on behalf of the director until the selected distribution date. The Virgin Islands Directors' Stock Deferral Plan for Nor west Corp. offers different types or options to meet the diverse needs of directors. These options may include: 1. Fixed Deferral Option: Directors can choose to defer a fixed percentage or amount of their cash compensation into stock on a regular basis. This option provides a stable and consistent approach to accumulating stock over time. 2. Performance-Based Deferral Option: Directors may have the opportunity to defer additional stock based on the company's performance metrics, such as earnings per share, return on equity, or market share. This option aligns the director's compensation with the company's success and encourages active participation in its growth. 3. Lump Sum Deferral Option: Directors can elect to defer a lump sum amount of their cash compensation or a one-time bonus into stock. This option allows directors to tailor their deferral based on specific financial situations or anticipated expenses. 4. Dividend Reinvestment Option: Directors who participate in the plan may have the choice to automatically reinvest any dividends earned on their deferred stock back into additional company stock. This option maximizes the potential for compounding returns and further enhances the long-term value of the director's investment. It is important to note that the Virgin Islands Directors' Stock Deferral Plan for Nor west Corp. aims to provide directors with flexibility and control over their compensation options while aligning their interests with the company's long-term growth. By deferring their compensation in the form of company stock, directors have the potential to benefit from the appreciation of Nor west Corp.'s stock value, promoting a stronger connection between their performance and their financial rewards.