Summary
Freeport-McMoRan Copper & Gold Inc. (FCX) announced on July 10, 2007, that its stockholders approved amendments to its 2006 Stock Incentive Plan. These amendments are a direct consequence of the March 2007 acquisition of Phelps Dodge Corporation, which significantly expanded the company's employee base and eligibility for stock-based awards. The primary objective of these changes is to ensure the company has sufficient equity to continue motivating and rewarding its key personnel following the integration of Phelps Dodge. The key changes to the plan include a substantial increase in the number of shares available for grants, from 12 million to 37 million. Additionally, sublimits for specific types of awards like restricted stock and units have been raised, and the plan's term has been extended by ten years to July 10, 2017. These adjustments are designed to support FCX's short-term and long-term compensation strategies in light of its expanded operations.
Key Highlights
- 1Stockholder approval of amendments to the 2006 Stock Incentive Plan.
- 2Amendments are necessitated by the significant increase in employee numbers post-Phelps Dodge acquisition.
- 3Number of shares available for grant under the plan increased from 12 million to 37 million.
- 4Sublimits for restricted stock, restricted stock units, and other stock-based awards have been increased.
- 5The term of the amended and restated Plan has been extended to July 10, 2017.
- 6The primary purpose is to ensure adequate equity for motivating and rewarding key personnel.