Pima Arizona Restricted Stock Plan of Sundstrand Corp.

• Category: Corporations - Public - Incentive Compensation Plans
• State: Multi-State
• County: Pima
• 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 Title: Understanding Lima Arizona Restricted Stock Plan of Bandstand Corp. Introduction: The Lima Arizona Restricted Stock Plan is a key component of the compensation package offered by Bandstand Corporation, a reputable company in the aerospace and defense industry. This comprehensive plan provides employees with an opportunity to acquire ownership in the company through restricted stock units (RSS). This article will delve into the details of the plan and its various types. 1. Definition: The Lima Arizona Restricted Stock Plan is a long-term incentive program designed to reward and retain talented individuals within Bandstand Corp. It grants eligible employees the right to receive company shares after a specific vesting period. 2. Vesting Schedule: The plan follows a predetermined vesting schedule, typically spanning over multiple years, during which the employee gains ownership of the granted shares progressively. This incentivizes employees to stay with the company, aligning their interests with those of shareholders. 3. Types of Restricted Stock Plans: a) Standard Restricted Stock Plan: Under this type of plan, eligible employees are granted a specific number of RSS. Upon vesting, these units convert into actual company shares, offering both monetary benefits and voting rights to the employees. b) Performance-Based Restricted Stock Plan: In some cases, Bandstand Corp. may offer a performance-based restricted stock plan. This plan sets certain performance criteria that employees must meet to become eligible for the granted shares. It measures individual, team, or organizational performance, ensuring a focus on productivity, innovation, or profitability. 4. Eligibility Criteria: The Lima Arizona Restricted Stock Plan is typically open to a selected group of employees, ranging from executives to key contributors, depending on their level of responsibility and strategic importance to the company. Eligibility requirements may vary based on factors such as years of service or job performance. 5. Tax Implications: When employees receive the granted shares, they often become subject to income tax based on the fair market value of the shares at the time of vesting. Bandstand Corp. may facilitate tax compliance by offering stock withholding options or providing information on tax obligations. Conclusion: The Lima Arizona Restricted Stock Plan offered by Bandstand Corp. presents a progressive and attractive compensation feature that aims to reward, retain, and motivate employees. With different types of plans under this program, the company ensures flexibility and alignment of interests between employees and stakeholders. By participating in this plan, employees not only benefit from potential stock appreciation but also gain a sense of ownership and commitment to the company's long-term success.

Title: Understanding Lima Arizona Restricted Stock Plan of Bandstand Corp. Introduction: The Lima Arizona Restricted Stock Plan is a key component of the compensation package offered by Bandstand Corporation, a reputable company in the aerospace and defense industry. This comprehensive plan provides employees with an opportunity to acquire ownership in the company through restricted stock units (RSS). This article will delve into the details of the plan and its various types. 1. Definition: The Lima Arizona Restricted Stock Plan is a long-term incentive program designed to reward and retain talented individuals within Bandstand Corp. It grants eligible employees the right to receive company shares after a specific vesting period. 2. Vesting Schedule: The plan follows a predetermined vesting schedule, typically spanning over multiple years, during which the employee gains ownership of the granted shares progressively. This incentivizes employees to stay with the company, aligning their interests with those of shareholders. 3. Types of Restricted Stock Plans: a) Standard Restricted Stock Plan: Under this type of plan, eligible employees are granted a specific number of RSS. Upon vesting, these units convert into actual company shares, offering both monetary benefits and voting rights to the employees. b) Performance-Based Restricted Stock Plan: In some cases, Bandstand Corp. may offer a performance-based restricted stock plan. This plan sets certain performance criteria that employees must meet to become eligible for the granted shares. It measures individual, team, or organizational performance, ensuring a focus on productivity, innovation, or profitability. 4. Eligibility Criteria: The Lima Arizona Restricted Stock Plan is typically open to a selected group of employees, ranging from executives to key contributors, depending on their level of responsibility and strategic importance to the company. Eligibility requirements may vary based on factors such as years of service or job performance. 5. Tax Implications: When employees receive the granted shares, they often become subject to income tax based on the fair market value of the shares at the time of vesting. Bandstand Corp. may facilitate tax compliance by offering stock withholding options or providing information on tax obligations. Conclusion: The Lima Arizona Restricted Stock Plan offered by Bandstand Corp. presents a progressive and attractive compensation feature that aims to reward, retain, and motivate employees. With different types of plans under this program, the company ensures flexibility and alignment of interests between employees and stakeholders. By participating in this plan, employees not only benefit from potential stock appreciation but also gain a sense of ownership and commitment to the company's long-term success.