Restricted Stock definition: Copy, customize, and use instantly
Introduction
The term "Restricted Stock" refers to shares of a company that are issued to employees, executives, or other stakeholders, but are subject to certain restrictions on transfer or sale. These restrictions typically include a vesting period, during which the shares cannot be sold or transferred. "Restricted Stock" is often used as part of an employee compensation package to incentivize long-term performance and loyalty.
Below are various examples of how "Restricted Stock" can be defined in different contexts. Copy the one that fits your needs, customize it, and use it in your contract.
Definition of "Restricted Stock" as part of employee compensation
This definition ties "Restricted Stock" to employee compensation plans.
"Restricted Stock" means shares issued to employees or contractors that are subject to restrictions on transfer, sale, or pledge, which lapse upon the fulfillment of specified vesting conditions or time-based requirements.
Definition of "Restricted Stock" as a stock grant
This definition connects "Restricted Stock" to a stock grant agreement.
"Restricted Stock" refers to shares of the company's stock granted to an individual with restrictions on the ability to sell, transfer, or dispose of the stock, which are lifted upon meeting certain conditions such as continued employment or performance milestones.
Definition of "Restricted Stock" as performance-based compensation
This definition links "Restricted Stock" to performance-based criteria.
"Restricted Stock" means shares that are issued as part of a compensation package, with restrictions that are lifted upon the achievement of specific performance goals or targets defined in the agreement.
Definition of "Restricted Stock" as a vesting stock
This definition applies "Restricted Stock" to stock with a vesting period.
"Restricted Stock" refers to shares granted to an employee or director that become transferable only after a certain vesting period, which is defined by time or the occurrence of specific events outlined in the stock agreement.
Definition of "Restricted Stock" as non-transferable stock
This definition connects "Restricted Stock" to non-transferability until certain conditions are met.
"Restricted Stock" means shares issued to an individual that cannot be transferred or sold until certain conditions, such as a vesting period or other terms specified in the agreement, have been fulfilled.
Definition of "Restricted Stock" as a tax-advantaged compensation
This definition ties "Restricted Stock" to tax considerations.
"Restricted Stock" refers to stock issued as part of an employee’s compensation package that qualifies for certain tax advantages, such as deferring tax liabilities until the stock vests or becomes transferable.
Definition of "Restricted Stock" as stock with a repurchase right
This definition links "Restricted Stock" to repurchase provisions.
"Restricted Stock" means shares that are subject to a company's right of repurchase if the individual leaves the company before certain conditions are met, such as the expiration of the vesting period.
Definition of "Restricted Stock" as stock issued under a stock plan
This definition connects "Restricted Stock" to an employee stock plan.
"Restricted Stock" refers to shares of stock issued to employees or directors under the terms of a stock incentive plan, subject to restrictions on transfer and conditions for vesting.
Definition of "Restricted Stock" as a bonus award
This definition ties "Restricted Stock" to bonus structures.
"Restricted Stock" means shares awarded as part of an employee bonus, subject to vesting restrictions that prevent the recipient from selling or transferring the shares until the conditions set forth in the agreement are met.
Definition of "Restricted Stock" as a form of long-term incentive
This definition links "Restricted Stock" to long-term incentive programs.
"Restricted Stock" refers to shares granted to executives or employees as part of a long-term incentive plan, where the recipient is not entitled to sell, transfer, or dispose of the shares until they meet certain performance or time-based criteria.
Definition of "Restricted Stock" as equity-based compensation
This definition connects "Restricted Stock" to equity compensation.
"Restricted Stock" means equity shares given as part of a compensation plan, subject to restrictions on transfer and a vesting schedule, intended to align the interests of employees or executives with the company’s long-term performance.
Definition of "Restricted Stock" as stock subject to clawback provisions
This definition applies "Restricted Stock" to stock with clawback clauses.
"Restricted Stock" refers to shares issued under a compensation agreement that can be reclaimed by the company if the recipient breaches terms of the agreement, such as leaving the company prematurely or failing to meet performance requirements.
Definition of "Restricted Stock" as a dividend-bearing stock
This definition ties "Restricted Stock" to dividends.
"Restricted Stock" refers to shares that, although subject to transfer restrictions, entitle the holder to dividends or other shareholder benefits during the restricted period.
Definition of "Restricted Stock" as part of an acquisition transaction
This definition connects "Restricted Stock" to acquisition-related stock grants.
"Restricted Stock" means shares granted to an employee or director as part of an acquisition transaction, where the shares are subject to restrictions until certain conditions are met, such as continued employment post-acquisition.
Definition of "Restricted Stock" as a form of deferred compensation
This definition links "Restricted Stock" to deferred compensation arrangements.
"Restricted Stock" refers to shares awarded as part of a deferred compensation plan, where the recipient is not entitled to the full benefits of the stock until certain vesting conditions or time requirements are satisfied.
Definition of "Restricted Stock" as a stock issued with forfeiture provisions
This definition ties "Restricted Stock" to forfeiture terms.
"Restricted Stock" means shares issued to an employee or other stakeholder with provisions for forfeiture if the recipient fails to meet certain conditions, such as leaving the company before the vesting period expires.
Definition of "Restricted Stock" as a performance share
This definition connects "Restricted Stock" to performance-based equity.
"Restricted Stock" refers to shares awarded to an individual based on the performance of the company or individual, where the stock is subject to restrictions until specific performance goals are achieved.
Definition of "Restricted Stock" as part of an executive compensation package
This definition applies "Restricted Stock" to executive compensation.
"Restricted Stock" means shares provided to executives as part of their compensation package, subject to restrictions on transfer and sale until the completion of a specified vesting period or performance targets.
Definition of "Restricted Stock" as a time-based restriction
This definition connects "Restricted Stock" to time-based restrictions.
"Restricted Stock" means shares granted to an individual with restrictions that lapse over time, subject to the individual remaining employed by the company or meeting certain other conditions.
Definition of "Restricted Stock" as part of a stock option plan
This definition ties "Restricted Stock" to stock option plans.
"Restricted Stock" refers to shares of stock granted to employees or executives under a stock option plan, which are subject to certain restrictions until they meet specific vesting conditions.
Definition of "Restricted Stock" as a retention tool
This definition applies "Restricted Stock" as a retention tool.
"Restricted Stock" means shares awarded to employees as a retention tool, with restrictions on transfer and sale until the employee has remained with the company for a predetermined period.
Definition of "Restricted Stock" as subject to insider trading rules
This definition connects "Restricted Stock" to insider trading compliance.
"Restricted Stock" refers to shares granted to an employee, executive, or director that are subject to insider trading restrictions, preventing the transfer or sale of the stock based on non-public information.
Definition of "Restricted Stock" as subject to tax withholding
This definition links "Restricted Stock" to tax compliance.
"Restricted Stock" means shares granted with the requirement that the company withholds applicable taxes upon vesting or transfer of the shares, in accordance with local tax laws.
Definition of "Restricted Stock" as performance-based equity
This definition connects "Restricted Stock" to performance-based conditions.
"Restricted Stock" refers to shares granted to an individual or executive that are subject to restrictions until specific performance goals, such as revenue targets or company growth metrics, are achieved.
Definition of "Restricted Stock" as part of an acquisition package
This definition applies "Restricted Stock" to acquisition-related transactions.
"Restricted Stock" means shares granted to employees or executives as part of an acquisition package, where the stock is subject to restrictions until the acquisition conditions are satisfied.
Definition of "Restricted Stock" as shares with market-based restrictions
This definition ties "Restricted Stock" to market-based conditions.
"Restricted Stock" refers to shares issued to employees or contractors with restrictions that are tied to market conditions, such as the company reaching a certain stock price or market capitalization before the stock becomes freely transferable.
Definition of "Restricted Stock" as awarded to non-executive employees
This definition connects "Restricted Stock" to non-executive employees.
"Restricted Stock" refers to shares issued to non-executive employees as part of their compensation, which are subject to restrictions on transfer and vesting based on continued employment or performance.
Definition of "Restricted Stock" as issued to board members
This definition applies "Restricted Stock" to board members.
"Restricted Stock" means shares granted to board members as part of their compensation, which are subject to restrictions on transfer and vesting conditions tied to company performance or time requirements.
Definition of "Restricted Stock" as a corporate governance tool
This definition links "Restricted Stock" to corporate governance.
"Restricted Stock" refers to shares issued as part of a governance structure, with restrictions placed on transfer to align the interests of employees or executives with the long-term objectives of the company.
Definition of "Restricted Stock" as a stock subject to a right of first refusal
This definition connects "Restricted Stock" to a right of first refusal.
"Restricted Stock" means shares that are subject to a right of first refusal, allowing the company or other shareholders to buy the shares before they are transferred to another party.
Definition of "Restricted Stock" as a stock grant with clawback provisions
This definition ties "Restricted Stock" to clawback provisions.
"Restricted Stock" refers to shares granted with provisions that allow the company to reclaim the stock if the recipient leaves the company before the vesting period ends or breaches other terms of the agreement.
Definition of "Restricted Stock" as a stock subject to shareholder approval
This definition connects "Restricted Stock" to shareholder approval.
"Restricted Stock" refers to shares granted to an employee or executive, where the issuance of the stock is subject to the approval of the company’s shareholders.
Definition of "Restricted Stock" as stock in a private company
This definition applies "Restricted Stock" to private companies.
"Restricted Stock" means shares issued by a private company, with restrictions on transfer or sale until the company becomes public or until certain conditions are met as outlined in the stock agreement.
Definition of "Restricted Stock" as part of a deferred compensation plan
This definition links "Restricted Stock" to deferred compensation plans.
"Restricted Stock" refers to shares granted as part of a deferred compensation plan, where the recipient is subject to restrictions on the sale or transfer of the stock until the plan’s conditions are met.
Definition of "Restricted Stock" as stock with a market value requirement
This definition connects "Restricted Stock" to market value conditions.
"Restricted Stock" means shares that are issued with restrictions on transfer until the stock reaches a specified market value or a certain performance threshold is achieved.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.