Performance Share Unit Contract (Public Company)

A Performance Share Unit Contract (Public Company) template is a legal document that outlines the terms and conditions of a compensation plan involving performance share units (PSUs) between a public company and its employees or executives.

PSUs are a form of long-term incentive that tie the employee's compensation directly to the company's performance. The contract specifies the criteria and objectives that the employee needs to meet or exceed in order to receive the allocated share units, typically measured over a specific performance period. These objectives can include financial targets, market share goals, revenue growth, or other key performance indicators, which are designed to align the employee's interests with the company's objectives.

The template typically states the number of PSUs granted to the employee, the vesting schedule (i.e., the timeline along which the PSUs convert into actual shares of company stock), and any performance conditions or requirements that must be met for the employee to be eligible for the vested units. It also specifies any clawback provisions in case of financial restatements, misconduct, or other specified events.

Moreover, the document may include details about the treatment of dividends, rights and restrictions related to the units, and provisions regarding potential change of control or termination of employment. The contract may also address matters like stock ownership guidelines, tax implications, and resolution of disputes.

Given that this template is for a public company, it conforms to relevant securities regulations, as well as applicable labor and employment laws. It is important to note that this template serves as a starting point for drafting agreements, and it may require customization to suit the specific needs and circumstances of the company and its employees or executives. Consulting legal professionals is recommended to ensure compliance and alignment with the organization's objectives.