What is the main purpose of the 2006 Long Term Incentive Plan?

The main purpose of the 2006 Long Term Incentive Plan is to provide Mastercard Incorporated with a flexible mechanism to offer various types of stock-based awards to employees, thereby motivating them, encouraging long-term performance, and retaining key talent.

Where can I find more details about the specific awards under the plan?

More specific details about the types of awards, eligibility criteria, and terms of the 2006 Long Term Incentive Plan can be found in the plan document itself, which is incorporated by reference as Annex G to Mastercard Incorporated's proxy statement filed on Schedule 14A on October 26, 2005.

How does this plan impact existing shareholders?

For shareholders, the adoption of a long-term incentive plan is generally seen as a positive step as it aims to align the interests of management and employees with those of shareholders. By offering equity-based compensation, the company encourages key personnel to focus on long-term growth and profitability, which can ultimately enhance shareholder value.

When did this plan officially become effective?

The stockholders adopted the plan on November 28, 2005, and it is designated as the '2006' Long Term Incentive Plan, suggesting it would become effective in the upcoming year, likely January 1, 2006, or as otherwise stipulated within the plan's terms.

MA 8-K: Material Agreements

Summary

This 8-K filing from Mastercard Inc. (MA), dated December 2, 2005, reports on a significant corporate governance event: the adoption of the MasterCard Incorporated 2006 Long Term Incentive Plan by its stockholders on November 28, 2005. This plan is designed to provide a variety of stock-based awards, aligning employee interests with those of shareholders and potentially serving as a tool for executive compensation and talent retention. For investors, the adoption of this long-term incentive plan signifies a commitment by Mastercard to motivate and retain key personnel through equity ownership. This can be viewed positively as it suggests management is focused on long-term value creation. Investors should note that details regarding the specific types of awards, grants, and eligibility will be found within the plan document itself, referenced in the proxy statement filed on October 26, 2005.

Key Highlights

1Mastercard Incorporated stockholders adopted the 2006 Long Term Incentive Plan on November 28, 2005.
2The plan is an omnibus plan, indicating it covers various forms of stock-based awards.
3This action was taken following a special meeting of stockholders.
4The plan is intended to incentivize and retain key employees and executives.
5The adoption of the plan aligns employee interests with shareholder value.
6Details of the plan are incorporated by reference from Mastercard's proxy statement filed on October 26, 2005.

Mastercard Inc 8-K Report, Material Agreement (Dec 2, 2005)

Summary

Key Highlights

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