Incentive Stock Options

[Randy Watson]

An ISO plan is required to designate the number of shares available for grant under the plan. If the corporation has a stock split, does the plan have to be amended to reflect a change in the number of shares available? For example, assume a plan is written so that 500,000 shares can be issued under the ISO plan. After adoption and approval, there's a stock split which doubles the shares that can be issued by the corporation. Does the plan have to be amended and do the shareholders need to approve the availability of 1,000,000 shares under the plan? Seems like the answer to that would be yes, but looking for thoughts on that. Thanks.

[Randy Watson]

An ISO plan is required to designate the number of shares available for grant under the plan. If the corporation has a stock split, does the plan have to be amended to reflect a change in the number of shares available? For example, assume a plan is written so that 500,000 shares can be issued under the ISO plan. After adoption and approval, there's a stock split which doubles the shares that can be issued by the corporation. Does the plan have to be amended and do the shareholders need to approve the availability of 1,000,000 shares under the plan? Seems like the answer to that would be yes, but looking for thoughts on that. Thanks.

Found my answser.

[Guest elmo27]

An ISO plan is required to designate the number of shares available for grant under the plan. If the corporation has a stock split, does the plan have to be amended to reflect a change in the number of shares available? For example, assume a plan is written so that 500,000 shares can be issued under the ISO plan. After adoption and approval, there's a stock split which doubles the shares that can be issued by the corporation. Does the plan have to be amended and do the shareholders need to approve the availability of 1,000,000 shares under the plan? Seems like the answer to that would be yes, but looking for thoughts on that. Thanks.

Found my answser.

I have come across a similar issue. If a company's LTIP limits the number of RSUs that can be awarded and the company negligency exceeds the limits, does the company have to take some corrective action? Void the excess awards? Any guidance appreciated.