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Shareholder approval of stock option plans will be required in USA

  • United States (old) Image

07 Jul 2003

The US Securities and Exchange Commission has approved new rules, which were adopted by the New York Stock Exchange and the Nasdaq Stock Market, requiring shareholder approval of equity compensation plans, including stock option plans.

The rules include limited exemptions for employment inducement awards; certain grants arising in mergers and acquisitions; and certain tax-qualified compensation plans such as "401" plans and similar plans under non-US tax laws. The SEC considered but rejected a blanket exemption for plans covering employees residing in non-US jurisdictions. Click for SEC Press Release and Text of New Rules.

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