How's this for a theory? The Co. gives board of Directors B stock in lieu of a bonus,they in turn convert to A's,the Co. then buys them back.Capital gains are taxed at only 15%,quite a bit less that a bonus added into ones income and taxed at the ordinary rate.What do think,am I all wet on this one or does it seem plausable? This is my thoughts after reading SEC Form #4 filed on 5?2/05.
I don't know of any divisions that included stock in a pay package. There is an "Outstanding Equity Awards" program that rewards management and non-management individuals nominated and selected for superior performance ... and the award is in stock grants or options. But the division has to meet its revenue and earnings goals before anyone is eligible to earn this award.