Washington 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

Washington Directors' Stock Deferral Plan for Nor west Corp is a comprehensive compensation program designed specifically for the directors of Nor west Corp, a prominent financial institution. This plan enables directors to defer a portion of their compensation, allowing them to invest in the company's stock for future financial growth. The plan offers various types of deferral options to ensure flexibility and meet individual directors' needs. One of the types of Washington Directors' Stock Deferral Plan for Nor west Corp is the Restricted Stock Unit (RSU) Deferral. This option allows directors to defer a percentage of their compensation directly into RSS, which represent a specific number of shares of Nor west Corp stock. Directors can then choose to receive this RSS in the future, providing them with an opportunity to benefit from potential stock price appreciation. Another type of deferral plan offered by Nor west Corp is the Stock Option Deferral Plan. Under this option, directors can defer a portion of their compensation into stock options. These options grant the director the right to purchase a specified number of Nor west Corp shares at a predetermined price, known as the exercise price. Directors can exercise their stock options at a later date, often when they believe the stock price will be advantageous. The Washington Directors' Stock Deferral Plan also includes the Performance-Based Deferral. This option enables directors to defer a portion of their compensation into a special account tied to the company's performance. The amount deferred can be based on performance metrics established by Nor west Corp, such as earnings per share or total shareholder return. The directors have the potential to earn additional compensation based on the performance of the company during the deferral period. An important feature of the Washington Directors' Stock Deferral Plan for Nor west Corp is the ability for directors to receive dividend equivalents on their deferred stock units or stock options. Even though the deferred shares or options have not been distributed, directors can still earn dividends equivalent to the dividends paid on the underlying stock during the deferral period. The plan also allows directors to make changes to their deferral elections on an annual basis, ensuring flexibility to adapt to changing financial circumstances and goals. Additionally, the Washington Directors' Stock Deferral Plan offers a variety of payout options upon distribution, including lump sum payments or installment payments over a specified period. Overall, the Washington Directors' Stock Deferral Plan for Nor west Corp provides a highly attractive and flexible compensation program for directors. This plan not only aligns the interests of directors with the long-term success of Nor west Corp but also offers the potential for additional financial growth through stock price appreciation, dividend equivalents, and performance-based incentives.