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Rajah Lehal

Employment Inducement Awards for Chief Executive Includes Acceleration Clause in Stock Option Plan

October 28, 2015

Links from this article: Read the article here.

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 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”.

Read the article here.Take away:

  • Special provisions can be added to stock option plans to make them more attractive, especially in the case of an higher echelon executive.
ESOP
Acceleration
Human Resources

Written by Rajah. Rajah Lehal is Founder and CEO of Clausehound.com. Rajah is a legal technologist and technology lawyer who is, together with the Clausehound team, capturing and sharing lawyer expertise, building deal negotiation libraries, teaching negotiation in classrooms, and automating negotiation with software.