Summary
This Form 8-K filing by The Charles Schwab Corporation (CSC) reports on material definitive agreements, specifically detailing executive compensation through restricted stock and stock option awards granted on October 30, 2006. These awards were issued under the company's 2004 Stock Incentive Plan to several key named executive officers, including Charles R. Schwab, Walter W. Bettinger II, Christopher V. Dodds, Deborah D. McWhinney, and Peter K. Scaturro. Investors should note that the restricted stock awards have performance-based vesting tied to return on equity targets, with vesting occurring in 25% increments annually from November 1, 2007, through 2010. The stock options have time-based vesting over four years and were granted with an exercise price of $19.186, which was 106% of the stock's closing price on the grant date. This indicates a premium exercise price, suggesting an alignment with shareholder value creation.
Key Highlights
- 1The Charles Schwab Corporation (CSC) granted restricted stock and stock options to key executive officers on October 30, 2006.
- 2Awards were made under the company's 2004 Stock Incentive Plan.
- 3Restricted stock awards are subject to performance-based vesting, contingent on achieving return on equity targets.
- 4Vesting of restricted stock occurs in 25% increments on November 1st of 2007, 2008, 2009, and 2010.
- 5Stock options vest over four years in 25% increments annually from the grant date.
- 6Stock options have a seven-year term.
- 7The exercise price for the stock options was set at $19.186, which was 106% of the closing stock price on the grant date.