Connecticut Management Stock Purchase Plan

• Category: Corporations - Public - Employees
• State: Multi-State
• Control #: US-CC-19-223D
• Format: Word; Rich Text

Description

19-223D 19-223D . . . Management Stock Purchase Plan under which Executive Compensation Committee can grant options to key employees (including officers) at prices equal to 60% of market value. Payment is made by delivery of five full recourse interest-bearing serial promissory notes, each for 20% of total purchase price, which mature on five succeeding anniversary dates of date of grant. Committee may forgive any payment of interest or principal on promissory notes if employee is then still employed by Company, has died, or become disabled or retired

Connecticut Management Stock Purchase Plan, also known as CSP, is a unique employee benefit initiative offered by Connecticut Management, a leading company in the finance industry. This plan enables eligible employees to purchase company stock in a convenient and affordable manner, fostering a sense of ownership and financial growth among its workforce. The Connecticut Management Stock Purchase Plan presents various advantages to its participants. Firstly, it allows employees to set aside a portion of their paychecks to acquire company shares at a discounted price. This discounted rate may vary based on the chosen plan, tenure, or the company's financial performance. By purchasing stock at a reduced cost, employees have the opportunity to gain a significant return on their investment over time. Another key benefit of participating in CSP is the tax advantages. Through this plan, employees may receive favorable tax treatment by deferring taxes on the purchase of stock until they decide to sell it. This provides potential tax savings and can be especially useful for long-term investors seeking to build wealth and save on taxable income. Connecticut Management offers different types of Stock Purchase Plans to cater to the diverse needs and preferences of its employees. These plans include: 1. Basic Stock Purchase Plan: This plan allows employees to purchase company stock at a discounted price through easy payroll deductions. It serves as an excellent entry-level option for employees looking to invest their earnings in their organization and take advantage of potential stock value appreciation. 2. Matching Stock Purchase Plan: As the name suggests, this plan offers an additional incentive to employees by providing a company match on their stock purchases. For example, Connecticut Management may match a certain percentage of the employee's contribution, effectively doubling their purchasing power. This plan encourages employees to invest more and accelerates their potential for financial growth. 3. Restricted Stock Unit Plan: In addition to the traditional stock purchase plans, Connecticut Management may also offer a Restricted Stock Unit (RSU) Plan. RSS are awarded at no cost to eligible employees as part of their compensation package. However, these units typically vest over a predetermined period, meaning employees gain ownership rights to the stock only after a specific duration of employment. It is important to note that the availability of these plans may vary depending on the specific policies and guidelines implemented by Connecticut Management. Employees should consult their human resources department or refer to the official plan documentation for comprehensive details, eligibility criteria, and any restrictions associated with the various Stock Purchase Plan options. In summary, Connecticut Management Stock Purchase Plan provides an excellent opportunity for employees to invest in the company and reap financial rewards. With attractive discounts, potential tax advantages, and various plan options, CSP stands as a valuable employee benefit that promotes long-term financial well-being and strengthens the connection between the employees and the organization.