Dallas Texas Long Term Performance and Restricted Stock Incentive Plan of Ipalco Enterprises, Inc.

State:
Multi-State
County:
Dallas
Control #:
US-CC-20-174D
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Word; 
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Description

20-174D 20-174D . . . Restricted Stock Incentive Plan under which Compensation Committee selects participants, determines number of shares of common stock covered by each grant, establishes appropriate performance measures, and chooses appropriate corporation peer group. The number of shares granted is equal to a percentage of participant's base salary for first calendar year of each three-year program. The base salary percentage target of first three-year grants range from 10% to 35%; maximum base salary grant permitted by Plan may not exceed 70% of participant's base salary. After end of a Performance Period, Committee determines adjustments, if any, that are required to be made to share grants for Performance Period based on actual results under Performance Measures (performance of corporation versus its peer group) for such Performance Period. After adjustments, restrictions on shares held by participant are lifted as to 1/3 on July 1 immediately following Performance Period and additional 1/3 increments on the first and second anniversaries of such July 1, provided participant is still employed by corporation on such date. If participant ceases to be employed by corporation before restrictions lapse on shares held by him or her, shares still subject to restrictions are immediately forfeited

The Dallas Texas Long Term Performance and Restricted Stock Incentive Plan of INALCOL Enterprises, Inc. is a comprehensive compensation program designed to attract and retain top talent within the organization. With the strategic use of long-term performance incentives and restricted stock options, this plan aims to align the interests of employees and shareholders towards the long-term success of the company. The plan includes various types of incentives specifically tailored to meet the diverse needs and expectations of employees. One such type is the Long Term Performance Incentive, which rewards employees based on the company's overall performance over a specified period. The performance goals are carefully established to drive growth, productivity, and profitability, ensuring a mutually beneficial relationship between the employees and the organization. Another type offered under this plan is the Restricted Stock Incentive. This type of incentive ensures that employees have a vested interest in the long-term success of the company by granting them shares of restricted stock. These shares are subject to certain vesting schedules and may be subject to specific conditions, such as continued employment or achieving predefined performance targets. By linking the value of these shares to the company's performance, employees are incentivized to actively contribute to achieving the company's goals. The Dallas Texas Long Term Performance and Restricted Stock Incentive Plan of INALCOL Enterprises, Inc. is designed to motivate employees to contribute their best efforts towards the company's long-term growth and success. By combining performance-based incentives with restricted stock options, the plan fosters a sense of ownership and accountability among employees. Key features of the plan include competitive performance targets, transparent performance measurement criteria, and clear communication channels to ensure that employees understand the purpose and potential benefits of participating in the program. Additionally, the plan may offer flexibility in structuring the incentives to accommodate the diverse needs of different employee groups or job levels within the organization. In summary, the Dallas Texas Long Term Performance and Restricted Stock Incentive Plan of INALCOL Enterprises, Inc. is a comprehensive compensation program that aligns the interests of employees and shareholders towards the long-term success of the organization. By incorporating various types of incentives, the plan motivates and rewards employees for their contributions to the company's performance and growth.

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FAQ

A Restricted Stock Award is a grant of company stock in which the recipient's rights in the stock are restricted until the shares vest (or lapse in restrictions). The restricted period is called a vesting period. Vesting periods can be met by the passage of time, or by company or individual performance.

The advantages of restricted stock bonus/purchase plans are (1) the employee can make the §83(b) election; (2) the employee is generally entitled to capital gain treatment on sale of vested stock; and (3) the Company gets a wage deduction without paying cash wages.

You typically receive the shares after the vesting date. Only then do you have voting and dividend rights. Companies can and sometimes do pay dividend equivlent payouts for unvested RSUs.

Restricted stock units are a way an employer can grant company shares to employees. The grant is "restricted" because it is subject to a vesting schedule, which can be based on length of employment or on performance goals, and because it is governed by other limits on transfers or sales that your company can impose.

Restricted stock awards let you take advantage of a so-called "83(b) election," which allows you to report the stock award as ordinary income in the year it's granted and then start the capital gain holding period at that time (caution: if the stock fails to appreciate, you don't get a refund of the tax you paid when

Restricted stock units are issued to employees through a vesting plan and distribution schedule after they achieve required performance milestones or upon remaining with their employer for a particular length of time. RSUs give employees interest in company stock but no tangible value until vesting is complete.

RSUs are appealing because if the company performs well and the share price takes off, employees can receive a significant financial benefit. This can motivate employees to take ownership. Since employees need to satisfy vesting requirements, RSUs encourage them to stay for the long term and can improve retention.

Restricted stock units are issued to employees through a vesting plan and distribution schedule after they achieve required performance milestones or upon remaining with their employer for a particular length of time. RSUs give employees interest in company stock but no tangible value until vesting is complete.

RSUs are taxed at the ordinary income rate and tax liability is triggered once they vest. This is different from incentive stock options , which are taxed at the capital gains rate and tax liability is triggered when the options are exercised .

A Restricted Stock Plan is a common way to share stock with employees in public companies. The shareholder approved plan simply allows for the issuance of stock to selected employees. Unlike stock options, employees receive the full starting value of the shares.

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Dallas Texas Long Term Performance and Restricted Stock Incentive Plan of Ipalco Enterprises, Inc.