Franklin Ohio Restricted Stock Plan of Sundstrand Corp.

• Category: Corporations - Public - Incentive Compensation Plans
• State: Multi-State
• County: Franklin
• Control #: US-CC-20-171D
• Format: Word; Rich Text

Description

20-171D 20-171D . . . Restricted Stock Plan under which a committee of Board of Directors sells shares of common stock to certain officers and senior employees at a price substantially below current market price. The shares are subject to following restrictions: (a) prohibition against any sale or other transfer and (b) obligation that participant (at corporation's option) must resell shares to corporation at price he paid for them if he ceases to be employed by corporation prior to expiration of from five to nine years after shares were sold to him, for reasons other than normal retirement, death, total disability or early retirement with consent of Board or committee. Except as otherwise provided, restrictions lapse as to 1/5 of aggregate number of participant's shares at expiration or each of fifth through ninth years after his purchase of such shares Franklin Ohio Restricted Stock Plan is an employee compensation program offered by Bandstand Corp., a reputable company operating in Franklin, Ohio. This plan aims to provide eligible employees with stock ownership in the corporation as a form of long-term incentive. Under the Franklin Ohio Restricted Stock Plan, selected employees receive restricted stock units (RSS) which grant them the right to acquire shares of Bandstand Corp.'s common stock after a predetermined vesting period. This RSS act as a valuable tool to attract, motivate, and retain talented individuals within the organization. The plan operates by granting employees a specific number of RSS, usually based on their job position, performance, and management's discretion. Once the RSS are awarded, they are subject to a vesting schedule, which outlines the timeframe over which the shares become fully transferable to the employee's ownership. It's important to note that the Franklin Ohio Restricted Stock Plan may have different variations tailored to various employee levels and positions within Bandstand Corp. For example, there can be separate plans for executives, managers, and general employees, each with their own specific terms, conditions, and vesting schedules. The benefits of participating in the Franklin Ohio Restricted Stock Plan are twofold. Firstly, employees have the opportunity to share in the company's success as the stock value appreciates. Secondly, it aligns the interests of employees with that of the corporation, fostering a sense of ownership and motivation towards achieving organizational goals. Tax implications are also crucial to consider when participating in the Franklin Ohio Restricted Stock Plan. Generally, the value of the RSS is taxable as ordinary income to the employee upon vesting. However, any future gains realized upon the sale of the shares will be treated as capital gains. In summary, the Franklin Ohio Restricted Stock Plan offered by Bandstand Corp. provides eligible employees in Franklin, Ohio, with an opportunity to acquire stock ownership in the company, fostering employee motivation, and aligning interests. Different variations may exist based on employee levels, each with unique terms and conditions. This comprehensive compensation program contributes to Bandstand Corp.'s success while providing long-term incentives to its dedicated workforce.

Franklin Ohio Restricted Stock Plan is an employee compensation program offered by Bandstand Corp., a reputable company operating in Franklin, Ohio. This plan aims to provide eligible employees with stock ownership in the corporation as a form of long-term incentive. Under the Franklin Ohio Restricted Stock Plan, selected employees receive restricted stock units (RSS) which grant them the right to acquire shares of Bandstand Corp.'s common stock after a predetermined vesting period. This RSS act as a valuable tool to attract, motivate, and retain talented individuals within the organization. The plan operates by granting employees a specific number of RSS, usually based on their job position, performance, and management's discretion. Once the RSS are awarded, they are subject to a vesting schedule, which outlines the timeframe over which the shares become fully transferable to the employee's ownership. It's important to note that the Franklin Ohio Restricted Stock Plan may have different variations tailored to various employee levels and positions within Bandstand Corp. For example, there can be separate plans for executives, managers, and general employees, each with their own specific terms, conditions, and vesting schedules. The benefits of participating in the Franklin Ohio Restricted Stock Plan are twofold. Firstly, employees have the opportunity to share in the company's success as the stock value appreciates. Secondly, it aligns the interests of employees with that of the corporation, fostering a sense of ownership and motivation towards achieving organizational goals. Tax implications are also crucial to consider when participating in the Franklin Ohio Restricted Stock Plan. Generally, the value of the RSS is taxable as ordinary income to the employee upon vesting. However, any future gains realized upon the sale of the shares will be treated as capital gains. In summary, the Franklin Ohio Restricted Stock Plan offered by Bandstand Corp. provides eligible employees in Franklin, Ohio, with an opportunity to acquire stock ownership in the company, fostering employee motivation, and aligning interests. Different variations may exist based on employee levels, each with unique terms and conditions. This comprehensive compensation program contributes to Bandstand Corp.'s success while providing long-term incentives to its dedicated workforce.