FTI Consulting granted ‘Employment Inducement Awards’ to induce its new Chief Strategy and Transformation Officer to join the company. The Inducement Awards included a stock option grant that was ‘outside of the shareholder approved program’ but ‘subject to the same terms and conditions’. The options were to vest over a period of three (3) years.
Among the terms unique to the Employment Inducement Awards, was a provision for acceleration of vesting of the options “upon certain termination of employment events and certain transactions involving the Company”.
Takeaway:
- Special provisions can be added to stock option plans to make them more attractive, especially in the case of an higher echelon executive.