When do the shares vest under the Management Recruiters share purchase match program?
Management_Recruiters Franchise · 2024 FDDAnswer from 2024 FDD Document
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.
In September 2019, our Board approved a share purchase match program to encourage ownership and further align the interests of key employees and directors with those of our shareholders. Under this program, we will match 20% of any shares of our common stock purchased on the open market by or granted in lieu of cash compensation to key employees and directors up to $25 thousand in aggregate value per individual within any calendar year. These shares
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 65–66)
What This Means (2024 FDD)
According to Management Recruiters's 2024 Franchise Disclosure Document, shares under the share purchase match program vest on the second anniversary of the purchase date. This program is designed to encourage ownership and align the interests of key employees and directors with the company's shareholders.
Management Recruiters will match 20% of shares purchased on the open market or granted in lieu of cash compensation to key employees and directors. The maximum match is $25,000 in aggregate value per individual within any calendar year.
For a prospective franchisee, this means that if they participate in the share purchase match program, the shares they receive will not be fully owned by them until two years after the date of purchase. This vesting is contingent upon the individual still being employed by the company or serving as a director, and meeting certain other vesting criteria. This encourages long-term commitment and alignment with the company's goals.