Summary
Caterpillar Inc. (CAT) filed a Form 8-K on March 22, 2004, to clarify the intent of its Board of Directors regarding the 1996 Stock Option and Long-Term Incentive Plan (the "Plan"). The primary purpose of this filing is to disclose a limitation on the annual pool of restricted stock available for grants under the Plan. Specifically, the Board intends to cap the annual restricted stock grants at a maximum of 250,000 shares per year for the remaining three years of the Plan's term, which expires in 2006. This will result in a total aggregate limit of 750,000 shares for restricted stock grants over this period. The company stated it will modify the Plan to formally reflect this clarified intent as soon as practicable. This disclosure is intended to provide greater clarity to investors regarding potential equity dilution from this specific incentive program.
Key Highlights
- 1Caterpillar Inc. filed an 8-K on March 22, 2004, to clarify its 1996 Stock Option and Long-Term Incentive Plan (the "Plan").
- 2The Board of Directors intends to limit annual restricted stock grants to a maximum of 250,000 shares per year.
- 3This annual limit applies for the remaining three years of the Plan, through 2006.
- 4The aggregate total of restricted stock shares available for grants under the Plan will not exceed 750,000 shares.
- 5The company plans to formally modify the Plan to reflect this clarified intent as soon as possible.
- 6This filing aims to provide transparency on potential equity awards and associated dilution.