Utah Management Stock Purchase Plan

• Category: Corporations - Public - Employees
• State: Multi-State
• Control #: US-CC-19-223D
• Format: Word; Rich Text

Description

19-223D 19-223D . . . Management Stock Purchase Plan under which Executive Compensation Committee can grant options to key employees (including officers) at prices equal to 60% of market value. Payment is made by delivery of five full recourse interest-bearing serial promissory notes, each for 20% of total purchase price, which mature on five succeeding anniversary dates of date of grant. Committee may forgive any payment of interest or principal on promissory notes if employee is then still employed by Company, has died, or become disabled or retired

Utah Management Stock Purchase Plan, also known as an Employee Stock Purchase Plan (ESPN), is a program offered by Utah Management to its employees that allows them to purchase company stock at a discounted price. This plan is designed to give employees an opportunity to share in the company's success and potentially benefit from its growth. Under the Utah Management Stock Purchase Plan, employees are given the option to contribute a portion of their regular paycheck towards purchasing company stock. The contributions are usually made on an after-tax basis, allowing employees to accumulate shares of company stock over time. One of the key advantages of the Utah Management Stock Purchase Plan is the discounted purchase price. The company typically offers a discount on the stock price, which can range from 5% to 15% below the market value. This discounted price enables employees to acquire company shares at a lower cost, potentially resulting in greater profits if the stock price appreciates. Another important feature of the Utah Management Stock Purchase Plan is its flexibility. Employees can usually choose how much they want to contribute to the plan, up to a certain limit. The contributions are often deducted automatically from the employee's paycheck, making it a convenient and hassle-free way to participate in the program. The Utah Management Stock Purchase Plan also offers tax advantages for employees. The contributions made towards purchasing company stock are typically not subject to immediate taxation. Instead, the taxation occurs upon the sale of the purchased shares, at which point the employee may be subject to capital gains tax. It is worth noting that there may be different types or variations of the Utah Management Stock Purchase Plan. Some plans may have specific eligibility requirements, such as a minimum length of service or a certain number of hours worked. Additionally, certain plans may offer different discount rates or contribution limits, depending on the company's policies and the employee's role or level within the organization. In summary, the Utah Management Stock Purchase Plan is an employee benefit program that allows employees of Utah Management to purchase company stock at a discounted price. It provides employees with an opportunity to share in the company's success and potentially benefit from its growth. The plan offers flexibility, tax advantages, and the potential for increased profits through the discounted purchase price.