When did the 2019 HireQuest, Inc. Equity Incentive Plan become effective for Management Recruiters?
Management_Recruiters Franchise · 2024 FDDAnswer from 2024 FDD Document
In December 2019, our Board approved the 2019 HireQuest, Inc. Equity Incentive Plan (the "2019 Plan"). Subject to adjustment in accordance with the terms of the 2019 Plan, no more than 1.5 million shares of common stock are available in the aggregate for the grant of awards under the 2019 Plan. No more than 1 million shares may be issued in the aggregate pursuant to the exercise of incentive stock options. In addition, no more than 250 thousand shares may be issued in the aggregate to any employee or consultant, and no more than 50 thousand shares may be issued in the aggregate to any non-employee director in any twelve-month period. Shares of common stock available for distribution under the Plan may consist, in whole or in part, of authorized and unissued shares, treasury shares or shares reacquired by the Company in any manner. The 2019 Plan was approved by our shareholders in June 2020 and became effective as of that date.
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 65–66)
What This Means (2024 FDD)
According to Management Recruiters's 2024 Franchise Disclosure Document, the 2019 HireQuest, Inc. Equity Incentive Plan (referred to as the "2019 Plan") was approved by the shareholders in June 2020 and became effective as of that date. This plan allows for the grant of awards, with a limit of 1.5 million shares of common stock available in the aggregate. A maximum of 1 million shares can be issued through incentive stock options. Individual employees or consultants are capped at 250,000 shares, while non-employee directors are limited to 50,000 shares within a twelve-month period. These shares can be authorized, unissued, treasury shares, or shares reacquired by the company.
The document also mentions a share purchase match program approved by the Board in September 2019. This program encourages ownership by matching 20% of shares purchased on the open market or granted in lieu of cash compensation to key employees and directors, up to $25,000 in aggregate value per individual annually. These matched shares vest on the second anniversary of the purchase date, contingent upon continued employment or service as a director and meeting other vesting criteria.
In 2023, Management Recruiters issued 12,498 shares of restricted common stock under the 2019 Plan, valued at approximately $231,000, to members of the Board of Directors for their services instead of cash compensation. Of these, 10,413 shares vested equally over the three months post grant, while the remaining 2,085 shares were issued under the share purchase match program. Additionally, 6,131 shares were issued in 2023 through the share purchase match program related to open market purchases by members of the Board of Directors.