Emerson Electric Co. has announced a new compensation plan for its President and CEO, Lal Karsanbhai, and Executive Vice President and COO, Ram Krishnan. The plan features special long-term, performance-based stock options, with 80% of the awards set at a significant premium to the company's stock price at the grant date. Each executive will receive tranches of 70,000 stock options, vesting pro rata over five years. The options require continued employment and must be exercised within ten years, with provisions for accelerated vesting in cases of death, disability, or a change in control. The awards include confidentiality, non-competition, and non-solicitation clauses.
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