How did Management Recruiters compensate members of the Board of Directors in 2020?
Management_Recruiters Franchise · 2024 FDDAnswer from 2024 FDD Document
stricted common stock to certain employees pursuant to our share purchase match program valued at approximately $1,100.
In 2020, we issued 81,943 shares of restricted common stock pursuant to the 2019 Plan valued at approximately $539,000 to members of our Board of Directors for their services in lieu of cash compensation. Of these, 61,868 shares vested equally over the following three months. The remaining 20,075 shares were issued pursuant to our share purchase match program.
Also in 2020, we issued 25,000 shares of restricted common stock to an employee pursuant to the 2019 Plan valued at approximately $179,000 for services, and to encourage retention. These shares vest over four years, with 50% vesting on September 11, 2021, and 6.25% vesting each quarter thereafter for the next eight quarters. Also in 2020, we issued 1,742 shares of re
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 65–66)
What This Means (2024 FDD)
According to Management Recruiters' 2024 Franchise Disclosure Document, in 2020, the company issued 81,943 shares of restricted common stock to members of its Board of Directors. The total value of these shares was approximately $539,000. This compensation was provided in lieu of cash payments for their services. Of the issued shares, 61,868 vested equally over the three months following the grant.
Additionally, Management Recruiters has a share purchase match program. Under this program, 20,075 of the shares issued to the Board of Directors were part of this initiative. The share purchase match program is designed to encourage ownership and align the interests of key employees and directors with the company's shareholders.
In this program, Management Recruiters matches 20% of shares purchased on the open market or granted in place of cash compensation to key employees and directors, up to $25,000 in aggregate value per individual each calendar year. These matched shares vest on the second anniversary of the purchase date, provided the individual is still employed by the company or serves as a director and meets other vesting criteria.