N.J. Admin. Code § 3:4-2.3

Current through Register Vol. 56, No. 23, December 2, 2024

Section 3:4-2.3 - Stock option plans

(a) A bank may permit its directors, officers and employees to participate in a stock option plan established pursuant to 17:9A-27.5 0 et seq., and a savings bank may permit its directors, officers and employees to participate in a stock option plan established pursuant to 17:9A-8.1 0.

(b) A savings and loan association may permit its directors, officers and employees to participate in a stock option plan to the same extent as permitted for banks and savings banks so long as the association complies with 17:9A-27.5 0 et seq.

(c) A depository may not grant stock options to a director for less than the higher of the par value or 100 percent of the fair market value of the shares at the time the options are granted. A depository may not grant stock options to an officer or employee for less than the higher of the par value or 85 percent of the fair market value of the shares at the time the options are granted. Stock option plans may not provide for the payment of cash to directors by the depository upon cancellation of the options.

(d) A stock option plan must be adopted by the depository's board of directors and approved by the holders of two-thirds of the capital stock of the depository entitled to vote.

N.J. Admin. Code § 3:4-2.3

Recodified from N.J.A.C. 3:4-2.2 by R.2008 d.69, effective 4/7/2008.
See: 39 N.J.R. 4983(a), 40 N.J.R. 1826(a).