Why does the board have to approve stock awards before I get my stock options & RSUs?

As the corporate secretary, you’ll get this question a lot from employees if your company grants options and restricted stock units to a wide swath of employees: “Why does the board/compensation committee have to approve my stock awards before I can get my stock options & RSUs?”

This is a big issue. Your equity is the company’s lifeblood. There are legal issues – although the authority to make grants to the rank & file can be delegated by the board to management.

But even then, there are other reasons – recordkeeping & keeping your financial affairs in order – to keep an eye on.

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