Illinois Director stock program

• Category: Corporations - Public - Stock Options
• State: Multi-State
• Control #: US-CC-18-172
• Format: Word; Rich Text

Description

18-172 18-172 . . Director Stock Program which provides that, on first day of director's term, such director will be granted option to acquire 900 shares of common stock, and on first day of each subsequent year of director's term, he or she will be granted options to acquire 300 shares of common stock. Options are at fair market value on date of grant and are exercisable in full six months after date of grant. The Director Stock Program also provides that, on first day of director's term, he or she will be awarded right to purchase 450 shares of restricted stock, and on first day of the second and third year of such director's term, he or she will be awarded right to purchase 150 shares of restricted stock. Purchase price will be equal to par value of common stock

The Illinois Director Stock Program is a unique initiative offered to directors in the state of Illinois, providing them with an opportunity to acquire stocks in various companies. This program aims to promote director participation in the growth and success of businesses, enhancing their financial interests and incentivizing their dedication. Through the Illinois Director Stock Program, directors gain the chance to purchase company stocks at discounted rates or through exclusive offerings. This allows them to align their financial interests with those of the companies they serve, fostering a stronger commitment and sense of ownership. There are several types of Illinois Director Stock Programs available, designed to cater to the specific needs and preferences of directors. These programs include: 1. Equity-Based Programs: Directors can acquire company stocks through equity-based programs, in which they are granted shares or options as a part of their compensation package. These stocks may vest over time, providing directors with an incentive to contribute to the company's long-term success. 2. Stock Purchase Plans: This type of program enables directors to purchase company stocks at a discounted price compared to market rates. These plans may be open to all directors or offered selectively based on tenure or performance. 3. Restricted Stock Units (RSS): In RSU programs, directors are granted the right to receive company stocks at a predetermined future date or upon meeting particular performance milestones. RSS encourage directors to remain with the company and actively contribute to achieving its goals. 4. Stock Options: Directors may also be offered stock options, granting them the right to purchase company stocks at a specific price, referred to as the exercise price, within a predetermined timeframe. Stock options provide directors with the potential for significant financial gain if the company's stock value rises. 5. Phantom Stock Programs: Phantom stock programs enable directors to receive cash or share-equivalent payouts tied to the company's stock performance without actually owning the underlying stock. Directors are provided with financial benefits similar to owning stocks, aligning their interests with those of the company's shareholders. The Illinois Director Stock Program aims to foster a sense of shared success between directors and the companies they guide. By offering a variety of stock-based incentives, this program encourages directors' loyalty, commitment, and active contribution to the growth and prosperity of Illinois businesses.