Michigan 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

Michigan Stock Option and Dividend Equivalent Plan (MSO DEP) is an employee benefit program offered by UGI Corp., a leading energy distribution and services company. This program allows eligible employees to purchase company stock options or receive dividend equivalents, providing them with opportunities to share in the company's success and potentially generate wealth. The MSO DEP consists of two primary components: the stock option plan and the dividend equivalent plan. Let's explore each in detail: 1. Michigan Stock Option Plan: The Stock Option Plan is designed to incentivize and reward employees for their contributions to UGI Corp.'s growth and value creation. Under this plan, eligible employees are granted the right to purchase a specific number of company shares at a predetermined price, known as the strike price. These options typically come with a vesting period, during which employees need to wait before exercising their right to buy shares. The stock options can be exercised within a specified period, usually several years, and allow the employees to purchase company stock at a discounted price (pre-determined strike price) even if the market price rises in the meantime. This flexibility can potentially result in financial gains for the employee. Employees can choose to hold onto the acquired shares or sell them on the open market, depending on their investment strategy and prevailing market conditions. 2. Dividend Equivalent Plan: The Dividend Equivalent Plan is an additional component of the MSO DEP that offers eligible employees the chance to receive dividends as if they had actually owned the underlying stock. This plan grants participants "phantom shares" that mirror the value and dividends of UGI Corp. common stock. Dividend equivalents are usually credited to participant accounts and may be reinvested or distributed in cash, subject to plan rules. By simulating actual ownership of company shares, the Dividend Equivalent Plan ensures that employees benefit from dividends without directly holding the stock, which might have potential tax consequences. This plan helps align the interests of employees with the company's long-term success and can be an attractive way to generate additional income. UGI Corp. exhibits different variations of the Michigan Stock Option and Dividend Equivalent Plan to accommodate the diverse needs of its workforce. These variations might include: 1. Executive Stock Option and Dividend Equivalent Plan: Designed specifically for top-level executives, this program offers enhanced benefits and more extensive stock options, reflecting their crucial role in the company's leadership and growth strategy. It aims to attract and retain high-caliber executives by providing them with substantial opportunities to build personal wealth. 2. Employee Stock Option and Dividend Equivalent Plan: This plan is introduced for a broader employee base, including non-executive staff members. It aims to motivate and engage employees by promoting loyalty and dedication to the company's success. The stock options and dividend equivalent benefits may differ from those offered in the executive plan but still provide a compelling opportunity for employees to participate in UGI Corp.'s growth. In conclusion, the Michigan Stock Option and Dividend Equivalent Plan offered by UGI Corp. is a comprehensive employee benefit program that allows eligible employees to purchase company stock options at a predetermined price or receive dividend equivalents. Including variations tailored for executives and general employees, this program incentivizes and rewards employees, fostering a stronger connection between their personal success and the company's growth trajectory.