A bill (A2885) that would give greater flexibility to corporations in granting equity awards to employees passed the Senate on June 25, 2009. The bill has now passed both the Senate and the Assembly, and it is awaiting action by the Governor. If approved, the bill would allow boards of directors to pass resolutions to allow officers to grant equity awards. The bill also would provide certain limits on officers’ power in this regard, such as precluding officers from granting equity awards to themselves, and providing that the board will continue to determine the size of the overall equity pool from which equity grants can be made.
Note: This article was published in the July 2009 issue of the New Jersey eAuthority.