The corporation stock incentive plan agreement is prevalent in the business organizations and is a mutual contract between an employee and an employer. The purpose of this agreement is to motivate the employees by paying them with the company’s stock and at the same time, to strengthen the financial situation of the corporation.
The agreement is governed by the Compensation Committee of the company. It is a group consisting of members, selected by the Board of Directors. The committee determines the total market value of the stock during the time, the agreement is granted. In the professional document, the value of the stocks and the other details are customized to suit the specific profiles of the employees.
The stock incentive plan agreement is helpful for the employees who want to get rewarded for their work with equity in the company. This also increases the productivity of the organization and is therefore helpful for the employers also.
Corporation Stock Incentive Plan Agreement
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