Summary
3M Company (MMM) filed an 8-K on May 13, 2008, to report the approval of the 3M 2008 Long-Term Incentive Plan (the "2008 Plan") by its stockholders at the annual meeting. This new plan replaces several previous incentive programs, including the 2005 Management Stock Ownership Program and the Performance Unit Plan, and also governs stock-based compensation for non-employee directors, replacing the 1992 Directors Stock Ownership Program. The 2008 Plan is designed to provide stock-based long-term incentives to a broad range of employees, with an anticipated 5,000 employees eligible for equity awards and approximately 110 employees, including Named Executive Officers, eligible for performance-based awards. The plan is administered by the Compensation Committee of the Board of Directors and allows for various award types such as stock options, restricted stock, and performance shares, with performance periods generally lasting at least three years. The plan is set to expire on May 13, 2018, unless terminated earlier by the Board.
Key Highlights
- 1Stockholders approved the new 3M 2008 Long-Term Incentive Plan (2008 Plan) on May 13, 2008.
- 2The 2008 Plan replaces previous stock-based incentive programs, including the 2005 Management Stock Ownership Program and the Performance Unit Plan.
- 3It also consolidates stock-based compensation for non-employee directors, replacing the 1992 Directors Stock Ownership Program.
- 4Approximately 5,000 employees are eligible for equity awards under the 2008 Plan.
- 5Around 110 employees, including Named Executive Officers, are eligible for performance-based awards (Performance Shares/Units).
- 6The plan permits the Compensation Committee to grant various awards including stock options, restricted stock, restricted stock units, and performance-based awards.
- 7The 2008 Plan will expire on May 13, 2018, unless terminated earlier by the Board of Directors.