Illinois Stock Option and Dividend Equivalent Plan with exhibits of UGI Corp.

• Category: Corporations - Public - Stock Options
• State: Multi-State
• Control #: US-CC-18-305
• Format: Word; Rich Text

Description

18-305 18-305 . . . Stock Option and Dividend Equivalent Plan which provides for issuance of Non-qualified Stock Options and Dividend Equivalents. From date of grant of option until earlier of (a) end of period selected by Committee over which total return realizable by stockholder of corporation on a share of stock is compared to that realizable by stockholders of companies in a Comparison Group ("Performance Period") or (b) date of participant's disability, death or termination of employment, corporation shall keep records for such participant ("Account") and shall credit Account with an amount equal to Dividend Equivalent associated with such option. Committee will determine measurable criteria pursuant to which total return realizable by stockholder on share of stock over applicable Performance Period can be compared to that realizable over same Performance Period by stockholders of Comparison Group. Extent to which participant receives payment of Dividend Equivalents will be determined by comparing such total return realizable by stockholder of the corporation to that realizable by stockholders of Comparison Group

Title: Understanding UGI Corp.'s Illinois Stock Option and Dividend Equivalent Plan: A Comprehensive Overview Introduction: In this article, we will delve into the Illinois Stock Option and Dividend Equivalent Plan offered by UGI Corp. We will explore the features and benefits of this program, shedding light on its various types, eligibility criteria, and potential advantages for employees. Additionally, we will showcase relevant exhibits to enhance the understanding of this plan. Exhibit 1: Illinois Stock Option and Dividend Equivalent Plan — Types: 1. Employee Stock Option Plan (ESOP): UGI Corp. offers employees the opportunity to participate in an ESOP, allowing them to purchase company shares at a predetermined price within a specified time frame. These options may be subject to certain vesting periods and exercise conditions. 2. Dividend Equivalent Plan: UGI Corp. extends a Dividend Equivalent Plan to eligible employees. This plan enables participants to receive cash dividends equivalent to those paid on UGI Corp. shares, even if they do not directly hold company stock. This encourages employee ownership. Exhibit 2: Features and Benefits: 1. Equity Participation: Through the Stock Option Plan, employees have the chance to become shareholders and benefit from any potential increase in UGI Corp.'s stock value. 2. Incentive for Employee Retention: The Stock Option and Dividend Equivalent Plan serve as effective employee retention tools, offering long-term incentives that promote loyalty and commitment. 3. Tax Advantages: Qualified stock options granted under the plan may offer tax advantages to employees, such as favorable capital gain treatment. 4. Dividend Appreciation: The Dividend Equivalent Plan ensures non-stockholding employees still receive financial benefits similar to those enjoyed by stockholders through cash dividends. Exhibit 3: Eligibility and Participation: 1. Eligibility: UGI Corp. establishes eligibility criteria considering factors like job level, performance, and tenure. Typically, these plans are available to employees at different hierarchical levels, from executives to everyday employees. 2. Employee Contributions: Employees who participate in the plan may need to contribute a portion of their salary or savings to purchase stock options. 3. Vesting and Exercise Periods: The plans may incorporate vesting periods, during which stock options accrue value, and exercise periods, allowing employees to buy the stock at the predetermined price. These periods vary based on UGI Corp.'s policies and plan specifics. Exhibit 4: Financial Impact and Reporting: 1. Financial Impact: The Illinois Stock Option and Dividend Equivalent Plan may affect UGI Corp.'s financial statements. The company may incur expenses related to employee compensation, stock option exercise, and potential dilution of existing shareholders' ownership. 2. Reporting: UGI Corp. regularly discloses information related to the stock option and dividend plans in their financial reports, such as the number of shares issued, options exercised, and related expenses. Conclusion: UGI Corp.'s Illinois Stock Option and Dividend Equivalent Plan provide employees with a valuable opportunity to participate in the company's success and growth. Through various types of plans, employees can become shareholders, benefit from dividends, and enjoy potential tax advantages. This program not only serves as an incentive for employee retention but also enhances employee engagement and aligns their interests with the company's objectives.