Summary
The Progressive Corporation (PGR) filed an 8-K on March 11, 2010, reporting an amendment to its 2010 Equity Incentive Plan. This amendment, approved by the Executive Committee of the Board of Directors on March 8, 2010, introduces a new restriction on the "buy out" of outstanding stock options or stock appreciation rights. Specifically, such buy outs will not be permitted if the exercise price of the award exceeds the fair market value of the Company's stock on the transaction date. It is crucial for investors to note that this Second Amendment to the Plan is still subject to shareholder approval at the upcoming Annual Meeting of Shareholders in April 2010. The company intends to provide a comprehensive summary of the amended Plan's provisions within its 2010 Proxy Statement. This filing primarily serves to inform stakeholders of this proposed modification and the procedural steps involved before it becomes effective.
Key Highlights
- 1The Progressive Corporation amended its 2010 Equity Incentive Plan on March 8, 2010.
- 2The amendment restricts 'buy outs' of stock options and stock appreciation rights.
- 3A buy out is prohibited if the award's exercise price is greater than the stock's fair market value on the transaction date.
- 4This amendment is subject to shareholder approval at the April 2010 Annual Meeting.
- 5Details of the amended plan will be included in the 2010 Proxy Statement.