Permissible management stock benefit plans after conversion.

CFR · 2024-01-01 · US · Title 12

(a) (1) The savings association discloses the plans in its proxy statement and offering circular and indicates in its offering circular that there will be a separate shareholder vote on the Option Plan and the MRP at least six months after the conversion. No shareholder vote is required to implement the ESOP. The savings association's ESOP must be tax-qualified. (2) The savings association's Option Plan does not encompass more than 10 percent of the number of shares that the savings association issued in the conversion. (3)(i) The savings association's ESOP and MRP do not encompass, in the aggregate, more than 10 percent of the number of shares that the savings association issued in the conversion. If the savings association has tangible capital of 10 percent or more following the conversion, the appropriate Federal banking agency may permit the ESOP and MRP to encompass, in the aggregate, up to 12 percent of the number of shares issued in the conversion; and (ii) The savings association's MRP does not encompass more than three percent of the number of shares that the savings association issued in the conversion. If the savings association has tangible capital of 10 percent or more after the conversion, the appropriate Federal banking agency may (4) No individual receives more than 25 percent of the shares under any plan. (5) The savings association's directors who are not officers of the savings association do not receive more than five percent of the shares of the MRP or Op

official document · source cfr-2024 · id 12:§ 192.500