New Delaware Law Permits Delegation of Authority To Officers To Grant Stock Options and Stock Rights
- Topics:
- Stock Options
- Tags:
- Business Operations,
- Corporate Governance,
- Corporate Law,
- Corporation,
- Finance,
- Investment,
- Pillsbury Winthrop,
- Stock,
- Stock Option
- Source:
- Pillsbury Winthrop
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Overview: This article is to permit Delaware corporations to delegate to an officer the authority to grant stock options and stock rights under a stock plan, subject to certain conditions. Prior to the law change, stock grants by a Delaware corporation had to be made by the board of directors of the corporation or a committee of the board of directors, such as a compensation committee. For boards and committees of public corporations that meet infrequently, this requirement would sometimes result in a delay of several days or weeks between the date that an employee started to render services to the corporation and the date of grant, during which time the market price of the corporation’s stock might have risen.
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Format: HTML | Size: 25KB | Date: Feb 2002 | Pages: 1
