Tennessee Restricted Stock Plan of Sundstrand Corp.

• Category: Corporations - Public - Incentive Compensation Plans
• State: Multi-State
• Control #: US-CC-20-171D
• Format: Word; Rich Text

Description

20-171D 20-171D . . . Restricted Stock Plan under which a committee of Board of Directors sells shares of common stock to certain officers and senior employees at a price substantially below current market price. The shares are subject to following restrictions: (a) prohibition against any sale or other transfer and (b) obligation that participant (at corporation's option) must resell shares to corporation at price he paid for them if he ceases to be employed by corporation prior to expiration of from five to nine years after shares were sold to him, for reasons other than normal retirement, death, total disability or early retirement with consent of Board or committee. Except as otherwise provided, restrictions lapse as to 1/5 of aggregate number of participant's shares at expiration or each of fifth through ninth years after his purchase of such shares

The Tennessee Restricted Stock Plan is an employee benefit program introduced by Bandstand Corp., a prominent company operating in various industries. This robust plan aims to incentivize and reward employees by offering them restricted stock units (RSS) in addition to their regular compensation. Under the Tennessee Restricted Stock Plan, employees receive RSS that represent a certain number of shares of Bandstand Corp.'s stock. However, this RSS come with certain restrictions and conditions that need to be met before the employees can fully own and dispose of the stock. These restrictions often include a vesting schedule, which determines when employees gain full ownership of the RSS. One notable feature of the Tennessee Restricted Stock Plan is that it aligns the interests of the employees with that of the company's shareholders. By granting employees ownership in the form of RSS, they become shareholders themselves, fostering a sense of ownership and motivating them to perform better to increase the company's value. Additionally, the Tennessee Restricted Stock Plan may also have a performance-based component, wherein the number of RSS granted may vary based on an employee's performance or the overall performance of the company. This performance-based element encourages employees to meet and exceed targets, further driving growth and success for Bandstand Corp. It's important to note that while this description encompasses the general concept of the Tennessee Restricted Stock Plan, specific details, such as the vesting schedule, eligibility criteria, and performance metrics, may differ based on the specific plan offered by Bandstand Corp. Variations within the Tennessee Restricted Stock Plan could include Executive Restricted Stock Plan, Employee Stock Purchase Plan, or Stock Option Plan, each with its own unique parameters and benefits. Overall, the Tennessee Restricted Stock Plan of Bandstand Corp. offers a valuable opportunity for employees to own a stake in the company and participate in its growth. This employee benefit program not only rewards individual performance but also fosters a productive and mutually beneficial relationship between the workforce and the company.