Washington Long Term Performance and Restricted Stock Incentive Plan of Ipalco Enterprises, Inc.

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US-CC-20-174D
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20-174D 20-174D . . . Restricted Stock Incentive Plan under which Compensation Committee selects participants, determines number of shares of common stock covered by each grant, establishes appropriate performance measures, and chooses appropriate corporation peer group. The number of shares granted is equal to a percentage of participant's base salary for first calendar year of each three-year program. The base salary percentage target of first three-year grants range from 10% to 35%; maximum base salary grant permitted by Plan may not exceed 70% of participant's base salary. After end of a Performance Period, Committee determines adjustments, if any, that are required to be made to share grants for Performance Period based on actual results under Performance Measures (performance of corporation versus its peer group) for such Performance Period. After adjustments, restrictions on shares held by participant are lifted as to 1/3 on July 1 immediately following Performance Period and additional 1/3 increments on the first and second anniversaries of such July 1, provided participant is still employed by corporation on such date. If participant ceases to be employed by corporation before restrictions lapse on shares held by him or her, shares still subject to restrictions are immediately forfeited

Washington Long Term Performance and Restricted Stock Incentive Plan of INALCOL Enterprises, Inc. is a comprehensive compensation program designed to attract, retain, and reward top talent within the organization. This plan offers employees the opportunity to participate in long-term performance-based incentives and acquire restricted stock, enhancing their overall compensation package. One of the key components of the Washington Long Term Performance and Restricted Stock Incentive Plan is the performance-based incentives. These incentives are tied to the overall performance of INALCOL Enterprises, Inc. and are designed to motivate employees to achieve specific financial, operational, and strategic goals. These goals may include revenue growth, cost reduction, customer satisfaction, or market expansion. By aligning employee performance with corporate objectives, this plan encourages individuals to contribute to the overall success of the organization. In addition to performance-based incentives, the plan offers restricted stock awards to eligible employees. Restricted stock refers to company stock granted to employees that comes with certain restrictions or limitations. These restrictions may include a vesting period, where employees must wait for a specified period before they can exercise their rights to the stock. This serves as an incentive for employees to remain with the company for a longer duration, further promoting loyalty and commitment. Moreover, the Washington Long Term Performance and Restricted Stock Incentive Plan of INALCOL Enterprises, Inc. recognizes different employee categories, such as executives, managers, and non-executive employees, with separate variations tailored to each group. The plan may offer higher incentives and stock grants to executives to align their interests with the long-term success of the company and reflect their broader responsibilities. Overall, the Washington Long Term Performance and Restricted Stock Incentive Plan is a valuable tool for INALCOL Enterprises, Inc. to attract and retain top talent, incentivize high performance, and align employee efforts with organizational goals. By offering long-term incentives and restricted stock awards, this comprehensive plan promotes employee loyalty, engagement, and commitment, creating a motivated workforce dedicated to driving the company's success.

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  • Preview Long Term Performance and Restricted Stock Incentive Plan of Ipalco Enterprises, Inc.
  • Preview Long Term Performance and Restricted Stock Incentive Plan of Ipalco Enterprises, Inc.
  • Preview Long Term Performance and Restricted Stock Incentive Plan of Ipalco Enterprises, Inc.
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FAQ

Each RSU will correspond to a certain number and value of employer stock. For example, suppose your RSU agreement states that one RSU corresponds to one share of company stock, which currently trades for $20 per share. If you're offered 100 RSUs, then your units are worth 100 shares of stock with a value of $2,000.

Some investors opt to sell their RSUs right away, before they have an opportunity to gain or lose value. It is a savvy way to minimize these capital gains taxes and avoid RSUs being taxed twice.

If you are on track toward meeting a retirement goal that is 10+ years out, it makes sense to choose options over RSUs. On the other hand, if you want to earmark this equity compensation for a retirement or education goal that is in five years or less, opting for more RSUs might be a better choice.

Restricted stocks are unregistered shares that are non-transferable for holders until they meet certain conditions. Well-established companies offer restricted stocks to company executives and directors as a form of equity compensation. Some restrictive conditions may be particular tenure or specific performance goals.

In summary, RSUs in public companies offer more immediate liquidity, allowing employees to sell their shares as soon as they vest. On the other hand, private company RSUs involve waiting for specific events or finding a willing buyer to access the value of the shares.

RSUs are a type of restricted stock (which may also be known as ?letter stock? or ?restricted securities?). Restricted stock is company stock that cannot be fully transferable until certain restrictions have been met. These can be performance or timing restrictions, similar to restrictions for options.

RSU's are effectively deferred employee bonuses. When the RSU's vest (when you're able to sell them), you'll receive a taxable benefit equal to the value of the shares received or cash received. This amount should be reported on your T4 from your employer.

Income in the form of RSUs will typically be listed on the taxpayer's W-2 in the ?Other? category (Box 14). Taxpayers will simply translate the figure listed in Box 14 to their federal tax return and, if applicable, state tax return(s).

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Washington Long Term Performance and Restricted Stock Incentive Plan of Ipalco Enterprises, Inc.