What is required for a company to rely on the exception from the shareholder approval requirement for an equity compensation inducement award?
In order to rely on the exception from the shareholder approval requirement for an equity compensation awarded as an inducement material to the individual’s entering into employment with the company, the issuance must be approved by the company’s compensation committee or a majority of the company’s independent directors. In addition, the company must issue a press release promptly following the grant, which discloses the material terms of the award.
Related Questions
- What is required for a company to rely on the exception from the shareholder approval requirement for an equity compensation inducement award?
- Does NASDAQs shareholder approval requirement for equity compensation plans or arrangements apply to foreign private issuers?
- Is NASDAQs requirement for shareholder approval of equity compensation plans or arrangements applicable to initial listings?
