What are the names of the incentive plans that Remax uses for equity-based compensation?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
During the second quarter of 2023, Holdings shareholders approved a new Holdings 2023 Omnibus Incentive Plan (the "2023 Incentive Plan"), that became effective immediately upon approval, superseding the prior 2013 Incentive Plan (the "2013 Incentive Plan"). The 2023 Incentive Plan along with the 2013 Incentive Plan (collectively referred to as the "Incentive Plan"), include restrictive stock units which may have time-based or performance-based vesting criteria. In addition, during the fourth quarter of 2023, pursuant to the inducement award exception under New York Stock Exchange Rule 303A.08, the Board of Directors approved equity grants to the Company's newly appointed CEO ("2023 CEO Grants") which have both time-based and performance-based vesting criteria.
Source: Item 1 — Business and Organization (FDD pages 334–464)
What This Means (2025 FDD)
According to Remax's 2025 Franchise Disclosure Document, the company utilizes two primary incentive plans for equity-based compensation. These are the Holdings 2023 Omnibus Incentive Plan (referred to as the "2023 Incentive Plan") and the prior 2013 Incentive Plan (referred to as the "2013 Incentive Plan"). These plans are collectively known as the "Incentive Plan".
The equity-based compensation under these plans includes restrictive stock units that may have either time-based or performance-based vesting criteria. Additionally, in the fourth quarter of 2023, the Board of Directors approved equity grants to the newly appointed CEO ("2023 CEO Grants") under the inducement award exception as per New York Stock Exchange Rule 303A.08. These grants have both time-based and performance-based vesting criteria.
For a prospective Remax franchisee, understanding these equity-based compensation plans is important as it provides insight into how Remax incentivizes its employees and executives. While franchisees themselves may not directly participate in these plans, the structure and terms of these plans can reflect the company's overall approach to compensation and performance management, which can indirectly affect the support and services franchisees receive. It is advisable for potential franchisees to inquire further about how these incentive plans align with the company's goals for franchisee success and support.