NASDAQ adopted its current rules regarding shareholder approval of equity compensation plans on June 30, 2003. Do plans adopted prior to that date require additional shareholder approval?
Plans that were adopted in compliance with the prior rule were grandfathered when NASDAQ adopted the current rules. However, any material amendment to such a plan effected on or after June 30, 2003, requires shareholder approval. In addition, if a grandfathered plan contains an evergreen provision, the plan cannot have a term in excess of ten years unless shareholder approval is obtained every ten years. Shareholder approval for a grandfathered plan with an evergreen provision would initially need to be obtained within ten years after the effective date of the plan. For more information, please see the final approval order.
Related Questions
- NASDAQ adopted its current rules regarding shareholder approval of equity compensation plans on June 30, 2003. Do plans adopted prior to that date require additional shareholder approval?
- Is NASDAQs requirement for shareholder approval of equity compensation plans or arrangements applicable to initial listings?
- Does NASDAQ require shareholder approval of equity compensation plans?
