On November 20, 2009, Governor Jon Corzine signed into law an amendment to an existing statute governing employee benefit plans. The statute is designed to provide greater flexibility to corporations in the types of equity awards that it may use to compensate employees. Under the new law (P.L. 2009, c.159), the board of directors may, by resolution, authorize one or more officers of the corporation to designate officers and employees to be recipients of shares of stock, rights or options created by the corporation. Therefore, company officers now can have the authority to provide employees with equity compensation in the same manner and at the same times as they provide cash compensation, without involving the board of directors.
Note: This article was published in the December 2009 issue of the New Jersey eAuthority.