Summary
This 8-K filing from The Charles Schwab Corporation (CSC) reports on changes to its director compensation structure, approved by stockholders at the 2007 Annual Meeting on May 17, 2007. The key change is an amendment to the 2004 Stock Incentive Plan, which alters the equity compensation provided to non-employee directors. Previously, non-employee directors received an initial grant of stock options and subsequent annual grants of stock options and restricted shares. The amendment streamlines this by providing a single, higher-value annual equity grant, split equally between stock options and restricted stock. The total annual grant value has been significantly increased, and the practice of providing an initial stock option grant upon joining the board has been discontinued.
Key Highlights
- 1Stockholders approved an amendment to The Charles Schwab Corporation's 2004 Stock Incentive Plan.
- 2The amendment primarily affects the compensation of non-employee directors.
- 3The annual equity grant for non-employee directors has been increased to a total value of $125,000.
- 4This annual grant will be split equally (50% each) between stock options and restricted stock.
- 5The exercise price for new stock options will be the closing price of CSC's common stock on the grant date.
- 6The initial grant of 10,000 stock options for new directors upon joining the board has been eliminated.
- 7Pro-rata annual grants will be provided in the first calendar year a director joins the board.