Massachusetts 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 Massachusetts Director Stock Program is a unique initiative specifically designed to incentivize and attract qualified executives to serve as directors of corporations based in Massachusetts. This program acts as a means to promote economic growth, enhance corporate governance, and foster expertise within the state. Under this program, eligible directors are granted stock options or stock grants as a form of compensation, which further aligns their interests with the long-term success of the company they serve. By offering stock-based incentives, the Massachusetts Director Stock Program aims to attract top talent and motivate directors to actively contribute to the growth and development of businesses located within the state. There are different types of Massachusetts Director Stock Programs that cater to various corporate structures and organizational sizes: 1. Public Corporation Director Stock Program: This program is specifically tailored for publicly traded corporations in Massachusetts. Directors serving on the board of such companies are eligible to receive stock options or stock grants, which are linked to the performance and success of the corporation. This type of program encourages participation from experienced directors who can contribute to the strategic decision-making process. 2. Private Corporation Director Stock Program: Designed for privately held corporations, this program extends the benefits of the Massachusetts Director Stock Program to directors of non-publicly traded companies. With stock options or stock grants, directors are provided an opportunity to gain ownership stakes in the company, enhancing their commitment to its long-term success and aligning their interests with shareholders. 3. Nonprofit Corporation Director Stock Program: Nonprofit organizations in Massachusetts can also benefit from the Director Stock Program. As nonprofit entities also require competent directors to guide their operations, this program offers stock-based incentives to attract skilled individuals who can contribute their expertise to these organizations. Stock grants or options can be utilized to encourage nonprofit directors to actively engage in strategic decision-making and enhance governance practices. Overall, the Massachusetts Director Stock Program helps maintain a high standard of corporate governance and attracts talented individuals to serve on corporate boards, regardless of the organization's legal structure. By offering stock-based compensation, this initiative promotes a culture of accountability, aligns director and shareholder interests, and stimulates economic growth within the state of Massachusetts.