Vector Group Ltd. Equity Retention and Hedging Policy for Executive Officers

Summary

Vector Group Ltd. has established a policy requiring its Executive Officers to retain at least 25% of the shares they receive from company equity awards, such as restricted stock or stock options, until they reach normal retirement age. The policy also prohibits Executive Officers from hedging these shares through trading in options or other derivatives related to the company's stock. This policy aims to align the interests of executives with those of shareholders and applies to awards granted after January 1, 2013.

EX-10.1 2 vgr-11520138kex101.htm EXHIBIT 10.1 VGR-1.15.2013 8K EX 10.1

Exhibit 10.1

Vector Group Ltd.

Equity Retention and Hedging Policy

Vector Group Ltd. (the “Company”) believes in aligning the long-term interests of Executive Officers with those of stockholders. To further that goal and to serve as an example to employees throughout the Company, the Compensation Committee has adopted this Equity Retention and Hedging Policy (the “Policy”).

Retention of Award Shares

Until normal retirement age, each Executive Officer shall retain at least 25% (after taxes and exercise costs) of the shares of common stock acquired by such officer under an incentive, equity or option award granted to them after January 1, 2013 (the “Award Shares”).

This Policy applies to awards occurring after January 1, 2013, as follows:


•	Restricted Stock - Commitment applies to the net shares issued to the Executive Officer after withholding taxes.


•	Stock Options - Commitment applies to net option shares acquired upon exercise of stock options after withholding taxes.

Normal retirement age shall be as defined in the Company’s Supplemental Retirement Plan.

Hedging of Award Shares

Our Executive Officers are prohibited from hedging their ownership of the Award Shares, including trading in publicly-traded options, puts, calls or other derivative instruments related to the Company’s stock.