Cuyahoga Ohio Stock Option and Stock Award Plan of American Stores Company

• Category: Corporations - Public - Stock Options
• State: Multi-State
• County: Cuyahoga
• Control #: US-CC-18-347C
• Format: Word; Rich Text

Description

18-347C 18-347C . . . Stock Option and Stock Award Plan under which Compensation and Stock Option Committee can grant (a) Incentive Stock Options, (b) Non-qualified Stock Options, (c) Stock Appreciation Rights, (c) Restricted Stock Awards, (d) Performance Units (which are converted into cash or common stock upon satisfaction of performance goals established by Committee and which, depending on extent to which they are met, will determine number of Performance Units that will be earned by individual, and (e) Tax Offset Bonuses The Cuyahoga Ohio Stock Option and Stock Award Plan is a compensation plan offered by American Stores Company, which is designed to incentivize and reward employees. This plan grants eligible employees the opportunity to acquire shares in the company's stock through stock options or stock awards. Stock options are a type of financial instrument that grants employees the right to purchase a certain number of company shares at a predetermined price, known as the exercise price or strike price. This option typically has an expiration date, after which it becomes worthless. Cuyahoga Ohio Stock Option Plan allows employees to benefit from the potential appreciation of the company's stock price over time. By acquiring stock at a lower exercise price, employees can potentially profit from an increase in the market value of the shares. On the other hand, stock awards are a form of restricted stock grant, which means employees receive actual shares of the company's stock. Unlike stock options, there is no exercise price associated with stock awards. Instead, the shares are subject to certain vesting conditions, such as a specific period of employment or achievement of performance targets. Once the vesting conditions are met, employees gain ownership of the awarded shares, which they can either sell at the market price or retain as long-term investments. The Cuyahoga Ohio Stock Option and Stock Award Plan may include different types of awards or options, tailored to employees' roles and performance. These could include: 1. Non-Qualified Stock Options (Nests): These stock options do not meet specific tax-qualified requirements, and any gains upon exercise are subject to ordinary income tax rates. Nests offer employees flexibility and the ability to buy shares at a predetermined price. 2. Incentive Stock Options (SOS): Unlike Nests, incentive stock options have specific tax advantages. If certain holding requirements are met, employees may benefit from long-term capital gains tax rates on the difference between the exercise price and the market price at the time of exercise. 3. Restricted Stock Units (RSS): RSS represent the promise to deliver company shares to employees once vesting conditions are satisfied. Unlike stock options, RSS do not have an exercise price. Upon vesting, employees receive the value of the granted shares, typically in cash or actual stock. 4. Performance Stock Awards: These awards are tied to the achievement of specific performance goals set by the company. Employees receive shares or cash equivalent to the value of the granted shares if the performance targets are met. Such awards align employee incentives with the company's success and goals. The Cuyahoga Ohio Stock Option and Stock Award Plan aims to motivate and retain talented employees by providing them with a direct stake in the company's financial success. Through stock options and stock awards, employees have the opportunity to share in the company's growth and financial performance, fostering a sense of ownership and loyalty among the workforce.

The Cuyahoga Ohio Stock Option and Stock Award Plan is a compensation plan offered by American Stores Company, which is designed to incentivize and reward employees. This plan grants eligible employees the opportunity to acquire shares in the company's stock through stock options or stock awards. Stock options are a type of financial instrument that grants employees the right to purchase a certain number of company shares at a predetermined price, known as the exercise price or strike price. This option typically has an expiration date, after which it becomes worthless. Cuyahoga Ohio Stock Option Plan allows employees to benefit from the potential appreciation of the company's stock price over time. By acquiring stock at a lower exercise price, employees can potentially profit from an increase in the market value of the shares. On the other hand, stock awards are a form of restricted stock grant, which means employees receive actual shares of the company's stock. Unlike stock options, there is no exercise price associated with stock awards. Instead, the shares are subject to certain vesting conditions, such as a specific period of employment or achievement of performance targets. Once the vesting conditions are met, employees gain ownership of the awarded shares, which they can either sell at the market price or retain as long-term investments. The Cuyahoga Ohio Stock Option and Stock Award Plan may include different types of awards or options, tailored to employees' roles and performance. These could include: 1. Non-Qualified Stock Options (Nests): These stock options do not meet specific tax-qualified requirements, and any gains upon exercise are subject to ordinary income tax rates. Nests offer employees flexibility and the ability to buy shares at a predetermined price. 2. Incentive Stock Options (SOS): Unlike Nests, incentive stock options have specific tax advantages. If certain holding requirements are met, employees may benefit from long-term capital gains tax rates on the difference between the exercise price and the market price at the time of exercise. 3. Restricted Stock Units (RSS): RSS represent the promise to deliver company shares to employees once vesting conditions are satisfied. Unlike stock options, RSS do not have an exercise price. Upon vesting, employees receive the value of the granted shares, typically in cash or actual stock. 4. Performance Stock Awards: These awards are tied to the achievement of specific performance goals set by the company. Employees receive shares or cash equivalent to the value of the granted shares if the performance targets are met. Such awards align employee incentives with the company's success and goals. The Cuyahoga Ohio Stock Option and Stock Award Plan aims to motivate and retain talented employees by providing them with a direct stake in the company's financial success. Through stock options and stock awards, employees have the opportunity to share in the company's growth and financial performance, fostering a sense of ownership and loyalty among the workforce.