Restricted Stock Units: On the Grant Date you will also be awarded Restricted Stock Units (RSUs) of SAM valued at approximately $1,000,000.00. The actual number of RSU shares will be based on the Market Price, rounded down to the nearest whole number of shares. The shares will vest one-fourth each year on March 1st in the years 2021-2024, contingent on your continued employment by the Company on the applicable vesting dates.
The RSU will be subject to a Restricted Stock Unit Agreement and the Companys Employee Equity Incentive Plan. RSUs have no expiration date, except that any then unvested awards are forfeited to the Company upon the end of employment.
Equity Grant Date: Your initial Option and RSU grants will be granted (the Grant Date) on your start date, if your start date is on or before March 6. If your start date is on or after March 9, the Grant Date will be the first day of the open trading window following the filing by the Company of its Q1 2020 results.
Future Equity Awards: You will be eligible for additional equity grant consideration beginning in 2021. The compensation structure of the Companys Executive Officers, including equity awards, is determined at the discretion of the Companys Board of Directors based on the recommendation of the Boards Compensation Committee, and may include both Options and RSUs. Annual equity awards to Executive Officers are granted on March 1 each year and the target fair value of the grant on the grant date is generally 100% of base salary (e.g., $420K for you in 2021), with 50% of the value delivered in RSUs that are time-based and 50% of the value in Stock Options that are performance based, both of which vest over four years.
Performance and Compensation Reviews: Annually beginning January 2021 with compensation increases effective April 2021.
Paid Time Off: You will be eligible for unlimited paid time off (PTO) due to the seniority of your role. PTO includes all vacation, sick, and personal time. You will not be required to track this time in our systems nor will you be paid out for any unused time should you terminate from The Boston Beer Company. You must be performing in your role to maintain eligibility for this program. Additionally, we encourage you to keep the following guidelines when using this discretionary policy:
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Use BBCs standard PTO schedule for reference.
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Tell your manager in advance of any planned absence, and the specific days you are requesting off. You cannot request more than 10 consecutive days at a given time without formal approval from your Executive Leadership Team member.
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Ensure there is an adequate coverage plan for the days you will be out.
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Ensure that your overall performance and delivery of goals is not impacted by the time off.
Benefits: You will be eligible to participate in our health and wellness programs upon your first day of employment with us. You will be eligible to participate in our 401(k) plan immediately. Enclosed, you will find more detailed forms along with our New Hire Checklist. If you have specific questions regarding them, please let me know. Please note it is imperative that you provide I-9 documentation on or before your first day so we are able to add you to our payroll system. Failure to do so may delay your first paycheck.
Employment Agreement: As a condition of your employment in this position, you are required to sign and return to Boston Beer the attached Employment Agreement prior to your start date and you acknowledge that you have been given ten (10) business days to review it prior to your start date. The Employment Agreement is incorporated into and is a part of this offer of employment. As additional consideration for your agreeing to and