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The court clearly disapproved of both practices, holding that it is inconsistent with a director's fiduciary duty to deal fairly and honestly with shareholders "for a board of directors to ask for shareholder approval of an incentive stock option plan and then later to distribute shares to managers in such a way as to undermine the very objectives approved by shareholders. nbsp;purchased stock valued at $1,075,289 for $9,225 under an incentive stock option plan of his employer, Exodus Company Although the $1,066,064 difference between the fair value and the purchase price of the stock was not currently income for the regular tax, the bargain purchase element did represent AMT income in 2000, resulting in an AMT liability of $286,483. announces the following transactions under its Incentive Stock Option Plan. |
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