Tennessee 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

Tennessee Director Stock Program: A Comprehensive Overview The Tennessee Director Stock Program is an initiative implemented by the state of Tennessee to promote economic growth and development by encouraging investment in local businesses. This program aims to incentivize individuals to serve as directors on the boards of Tennessee-based companies through various stock-related benefits. One of the key features of the Tennessee Director Stock Program is its emphasis on aligning the interests of directors with the long-term success of the company. Directors are offered the opportunity to purchase company stock at a discounted price, often referred to as director stock options or director stock grants. This not only encourages directors to actively participate in the growth of the business but also shows their commitment to the company's success. The program provides several potential benefits for directors participating in the Tennessee Director Stock Program. Firstly, the discounted stock price enables directors to invest in the company they serve, potentially generating substantial returns if the company performs well in the long run. Moreover, owning company stock aligns the interests of directors with the shareholders, fostering a sense of responsibility and accountability towards value creation. Additionally, participating directors may gain access to certain perks such as dividends, voting rights, and even the opportunity to serve on various committees within the company. These additional benefits further enhance the attractiveness of the program and incentivize qualified professionals to become engaged directors in Tennessee businesses. While the Tennessee Director Stock Program represents a comprehensive framework, there are specific types of programs within this initiative, each tailored to different purposes and objectives. Some notable types of Tennessee Director Stock Programs include: 1. Tennessee Director Stock Option Program: This program focuses on offering directors the opportunity to purchase company stock at a predetermined price within a specified timeframe. Directors can exercise their stock options at a later date, potentially benefiting from any increase in the stock's value. 2. Tennessee Director Stock Grant Program: Unlike stock options, stock grants are awarded to directors without requiring any upfront purchase. These grants are typically subject to a vesting period during which directors must meet certain performance or tenure criteria before being able to fully own the granted stock. 3. Tennessee Director Stock Purchase Program: In this program, directors have the option to purchase company stock at a discounted price directly from the company. The purchased stock becomes part of the director's investment portfolio and can be traded or held for long-term investment purposes. Each type of program within the Tennessee Director Stock Program offers unique benefits and opportunities for directors to participate in the growth and success of Tennessee-based companies. These programs not only attract qualified individuals to serve on company boards but also contribute to strengthening the overall business ecosystem and fostering economic development within the state.