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The plan would allow the company to grant stock options and restricted stock to employees, consultants and others, according to a filing with the Securities and Exchange Commission.

"The new stock incentive plan will strengthen our pay-for-performance compensation strategies, and we, therefore, intend to use the new plan in place of -- not in addition to -- existing plan," Chairman and Chief Executive Robert C. Stempel said in a statement.

The board also eliminated its "Class A" and "Class B" common stock structure, and increased the number of independent directors from four to six through the appointments of Pasquale Pistorio and George A. Schreiber, Jr., bringing the total number of directors to eight.

Energy Conversion Devices said the board believes it needs to increase the authorized number of shares for flexibility to conduct its business and plan for future events, such as possible stock splits, stock dividends and other transactions.

Both initiatives are subject to shareholder approval.

Energy Conversion Devices closed down 9 cents at $33.70 on the Nasdaq, and fell $1.25, or 3.7 percent, to $32.45 in aftermarket trading.