Wake North Carolina Insurance Agents Stock option plan

• Category: Corporations - Public - Stock Options
• State: Multi-State
• County: Wake
• Control #: US-CC-18-181A
• Format: Word; Rich Text

Description

18-181A 18-181A . . . Insurance Agents Stock Option Plan under which Compensation Committee may grant Non-qualified Stock Options to any insurance agent who signs agreement which commits agent to produce at least $300,000 of premiums during specific three-year period ("Qualification Period"). Number of shares covered by option is equal to agent's premium commitment divided by $100, and options become exercisable only to extent agent satisfies his or her minimum commitment for premiums during Qualification Period, and only to extent loss ratios for insurance business written meet or exceed certain performance criteria A stock option plan refers to a benefit offered by Wake North Carolina Insurance Agents to its employees, giving them the opportunity to purchase company stock at a predetermined price within a specific timeframe. This plan aims to incentivize and reward employees for their commitment, loyalty, and contribution to the company's success. Wake North Carolina Insurance Agents offers various types of stock option plans to its employees, allowing individuals to choose the one that best suits their needs and financial goals: 1. Employee Stock Purchase Plan (ESPN): This plan offers employees the chance to buy company stock at a discounted price, usually lower than the market value. Through regular payroll deductions, employees can accumulate funds in a designated account, which they can then use to purchase company shares at a predetermined date. 2. Incentive Stock Options (SOS): These stock options are typically granted to high-performing employees as a way to reward and motivate them. SOS come with tax advantages, as the gain realized from exercising the options is generally taxed at a lower rate. Employees receive the right to purchase company stock at a specific price within a pre-established timeframe. 3. Non-Qualified Stock Options (Nests): Unlike SOS, these stock options do not meet certain Internal Revenue Code requirements, making them more flexible for companies. Nests provide employees with the ability to purchase company stock at a set price, but the difference between the stock's fair market value at the time of exercise and the exercise price is taxable as ordinary income. Wake North Carolina Insurance Agents' stock option plan serves as an effective tool to attract and retain talented employees. It aligns the interests of employees with that of the company by encouraging them to take an active role in its long-term success. By offering different types of stock option plans, the company ensures that employees have choices that best suit their financial objectives and risk tolerance.

A stock option plan refers to a benefit offered by Wake North Carolina Insurance Agents to its employees, giving them the opportunity to purchase company stock at a predetermined price within a specific timeframe. This plan aims to incentivize and reward employees for their commitment, loyalty, and contribution to the company's success. Wake North Carolina Insurance Agents offers various types of stock option plans to its employees, allowing individuals to choose the one that best suits their needs and financial goals: 1. Employee Stock Purchase Plan (ESPN): This plan offers employees the chance to buy company stock at a discounted price, usually lower than the market value. Through regular payroll deductions, employees can accumulate funds in a designated account, which they can then use to purchase company shares at a predetermined date. 2. Incentive Stock Options (SOS): These stock options are typically granted to high-performing employees as a way to reward and motivate them. SOS come with tax advantages, as the gain realized from exercising the options is generally taxed at a lower rate. Employees receive the right to purchase company stock at a specific price within a pre-established timeframe. 3. Non-Qualified Stock Options (Nests): Unlike SOS, these stock options do not meet certain Internal Revenue Code requirements, making them more flexible for companies. Nests provide employees with the ability to purchase company stock at a set price, but the difference between the stock's fair market value at the time of exercise and the exercise price is taxable as ordinary income. Wake North Carolina Insurance Agents' stock option plan serves as an effective tool to attract and retain talented employees. It aligns the interests of employees with that of the company by encouraging them to take an active role in its long-term success. By offering different types of stock option plans, the company ensures that employees have choices that best suit their financial objectives and risk tolerance.