Microsoft`s 2017 Stock Plan and Its Form of Stock Award Agreement

Microsoft`s 2017 Stock Plan and Its Form of Stock Award Agreement

Microsoft, one of the world`s leading technology companies, is known for its innovative products and services. The company`s success is reflected in its stock performance, which has been consistently high over the years. In 2017, Microsoft introduced a new stock plan, which aims to incentivize and reward employees for their hard work and contributions to the company`s growth. In this article, we will take a closer look at Microsoft`s 2017 Stock Plan and its Form of Stock Award Agreement.

What is Microsoft`s 2017 Stock Plan?

Microsoft`s 2017 Stock Plan is an equity compensation plan that provides eligible employees with stock options, restricted stock units (RSUs), and performance stock units (PSUs). The plan is designed to align the interests of employees with those of shareholders, encourage long-term retention, and attract top talent to the company.

Under the plan, eligible employees have the opportunity to receive stock options, which are the right to buy a certain number of shares of Microsoft stock at a predetermined price (the “exercise price”) within a specified time period. RSUs, on the other hand, are units of Microsoft stock that vest over time or upon the achievement of certain performance goals. Finally, PSUs are similar to RSUs but are tied to performance goals that the company sets at the beginning of each fiscal year.

What is the Form of Stock Award Agreement?

The Form of Stock Award Agreement is a document that outlines the terms and conditions of the stock options, RSUs, or PSUs that an employee receives under the 2017 Stock Plan. It specifies the number of shares awarded, the grant date, the vesting schedule, and the exercise price (for stock options). The agreement also includes restrictions on the transfer of the shares and outlines the tax consequences of receiving the award.

The Form of Stock Award Agreement is an important document that employees should review carefully before accepting an award under the 2017 Stock Plan. It is crucial for employees to understand the terms of the agreement, as they will affect their compensation and tax liability.

How does the 2017 Stock Plan benefit employees?

The 2017 Stock Plan provides several benefits to Microsoft employees. First, it aligns their interests with those of shareholders, as the value of their equity awards is directly tied to the company`s performance. This creates an incentive for employees to work hard and contribute to the company`s growth and success.

Second, the plan encourages long-term retention. Since RSUs and PSUs vest over time, employees are incentivized to stay with the company for the long haul. This ensures that Microsoft retains its top talent, which is crucial for the company`s continued success.

Finally, the plan helps attract top talent to the company. Stock options, RSUs, and PSUs are valuable forms of compensation that can be very attractive to prospective employees. By offering these equity awards, Microsoft can recruit the best and brightest in the industry.

In conclusion, Microsoft`s 2017 Stock Plan and its Form of Stock Award Agreement are important tools for incentivizing and rewarding employees. By aligning their interests with those of shareholders, encouraging long-term retention, and attracting top talent, the plan helps ensure that Microsoft continues to be a leader in the technology industry. As a professional, it`s important to highlight the key benefits and details of the plan in order to attract readers interested in finance, technology and news on major corporations.