District of Columbia Restricted Stock Plan of Sundstrand Corp.

• Category: Corporations - Public - Incentive Compensation Plans
• State: Multi-State
• 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

The District of Columbia Restricted Stock Plan of Bandstand Corp. is a distinctive stock-based compensation program offered by the company to its employees working in the District of Columbia. This plan is designed to provide eligible employees with an opportunity to acquire and own shares of Bandstand Corp. stock, but with certain restrictions in place. Under the District of Columbia Restricted Stock Plan, selected employees are granted restricted stock units (RSS) as a form of compensation. This RSS represents a promise to deliver a certain number of shares of Bandstand Corp. stock to the employee at a future date, typically after the fulfillment of certain conditions. These conditions may include a specified period of employment, the achievement of performance goals, or the occurrence of a predetermined event. The purpose of imposing restrictions on the stock units is to ensure employee retention and incentivize their commitment towards the company's success. As such, until the conditions are met, the RSS remain subject to forfeiture or other restrictions defined by the plan. Once the restrictions lapse, the RSS are typically converted into actual shares of Bandstand Corp. stock, providing employees with ownership and potential financial gains tied to the company's performance. It is worth noting that the District of Columbia Restricted Stock Plan of Bandstand Corp. may have different variations or sub-plans in order to cater to specific employee groups or objectives. For instance, there could be plans tailored for top executives, middle managers, or diverse departments within the company. These sub-plans might have distinct eligibility criteria, vesting schedules, or performance targets based on the specific goals they aim to achieve. In summary, the District of Columbia Restricted Stock Plan of Bandstand Corp. is a compensation scheme offering eligible employees the opportunity to acquire shares of Bandstand Corp. stock, subject to predetermined restrictions. By granting RSS, the plan encourages employee retention and aligns their interests with the company's performance. Throughout different variations or sub-plans of this program, Bandstand Corp. strives to motivate and reward its employees in the District of Columbia.