Pennsylvania Directors' Stock Deferral Plan for Norwest Corp.

• Category: Corporations - Public - Incentive Compensation Plans
• State: Multi-State
• Control #: US-CC-20-111C
• Format: Word; Rich Text

Description

20-111C 20-111C . . . Directors' Stock Deferral Plan which allow participants to defer to later year certain compensation which would otherwise be includable in income for tax purposes in year in which it would have been paid. The Plans also provide for investment of such compensation in deferred stock account in form of shares of corporation common stock

Pennsylvania Directors' Stock Deferral Plan for Nor west Corp is a comprehensive program designed to provide Pennsylvania directors of Nor west Corp with the opportunity to defer a portion of their compensation in the form of company stock. This plan offers a range of benefits and options to participating directors, allowing them to align their financial interests with the long-term success of the company. Under this plan, Pennsylvania directors are given the flexibility to elect to defer a percentage of their director fees, stock options, or dividends into Nor west Corp stock. By deferring these earnings, directors can delay the recognition of income and potential tax liabilities, while also potentially benefiting from any future appreciation in the value of Nor west Corp stock. There are several types of Pennsylvania Directors' Stock Deferral Plan for Nor west Corp that provide additional choices for participating directors: 1. Deferred Stock Unit Plan: Directors can choose to convert their deferred compensation into deferred stock units (DSS). These DSS represent the right to receive Nor west Corp stock in the future, which will be delivered upon the occurrence of specified events such as retirement, termination, or a predetermined vesting schedule. 2. Stock Option Deferral Plan: This plan allows directors to defer the exercise of their stock options until a later date. By doing so, they can delay the recognition of taxable income and potentially capture any future increase in the stock's value before exercising the options. 3. Dividend Reinvestment Plan: Directors who own Nor west Corp stock can opt to reinvest their dividends back into the company's stock. This plan provides an opportunity to compound wealth by acquiring additional shares over time. Participants in the Pennsylvania Directors' Stock Deferral Plan enjoy the advantage of potentially favorable tax treatment, as deferrals are made on a pre-tax basis, thus reducing their current taxable income. However, it is important to note that tax regulations and individual circumstances may vary, and directors should consult with their own tax advisors to assess the tax implications of participating in this plan. The Pennsylvania Directors' Stock Deferral Plan for Nor west Corp underscores the commitment of the company to attract and retain top-quality directors while promoting their alignment with shareholder interests. By offering various deferral options, Nor west Corp aims to provide directors with greater flexibility, enhanced financial planning opportunities, and potential long-term growth through stock ownership.