Tennessee Approval of Company Stock Award Plan

State:
Multi-State
Control #:
US-CC-20-183-NE
Format:
Word; 
Rich Text
Instant download

Description

This sample form, a detailed Approval of Stock Award Plan document, is a model for use in corporate matters. The language is easily adapted to fit your specific circumstances. Available in several standard formats.
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FAQ

A stock grant occurs when a company issues shares of its stock in exchange for non-cash consideration, typically the performance of services. By compensating with stocks, the employer aims to motivate employees to stay at the company and keep them invested in its ongoing success.

When you're granted stock options, you have the option to purchase company stock at a specific price before a certain date. Whether you actually purchase the stock is entirely up to you. RSUs, on the other hand, grant you the stock itself once the vesting period is complete. You don't have to purchase it.

An equity award is a non-cash compensation paid in terms of company equity. This is mostly granted in addition to a basic below-market salary in cash.

Broadly, there are four types of stock awards: Stock options. Restricted stock and Restricted Stock Units (RSUs) Stock Appreciation Rights (SARs), and. Employee Stock Purchase Plans (ESPPs)

Key Takeaways Stock compensation is a way corporations use stock or stock options to reward employees in lieu of cash. Stock compensation is often subject to a vesting period before it can be collected and sold by an employee.

RSUs are allowed, by law, to be granted to employees and non-employees alike. This means they can be used for contractors and outside directors.

Remember: If you hope to purchase and sell your stock someday, accepting your stock option grant is the first step you have to take.It doesn't cost anything to accept the grant, and you're not obligated to actually exercise your options.

Restricted stock units give employees interest in their employer's equity but have no tangible value until they are vested. The RSUs are assigned a fair market value (FMV) when they vest. Restricted stock units are considered income once vested, and a portion of the shares is withheld to pay income taxes.

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Tennessee Approval of Company Stock Award Plan