Arkansas Share Appreciation Rights Plan with amendment

• Category: Corporations - Public - Stock Options
• State: Multi-State
• Control #: US-CC-18-400D
• Format: Word; Rich Text

Description

18-400D 18-400D . . . Share Appreciation Rights Plan under which stock option committee determines to whom units are awarded, number of units to be awarded and terms of such units. On grant date, committee assigns each unit a base value which cannot be less than market value of share of common stock on that date. Each award becomes exercisable with respect to 25% of units awarded on each of first four anniversaries of grant date, provided grantee has been continually employed full-time by corporation or subsidiary. Units may be exercised, to extent vested, at any time until five years after grant date. Upon exercise of vested units, grantee is entitled to receive net appreciation of such units in cash or in shares of common stock, as determined by committee Arkansas Share Appreciation Rights Plan: A Comprehensive Overview The Arkansas Share Appreciation Rights Plan (SAR Plan) is a popular employee benefit program implemented by companies operating in the state of Arkansas. This plan enables employees to receive additional compensation in the form of share appreciation rights, which provide them with the opportunity to share in the company's growth and profitability. Under the SAR Plan, employees are granted SARS, which are rights to receive the appreciation in the value of a specified number of company shares over a predetermined period. The appreciation is calculated by subtracting the exercise price (or grant price) from the fair market value of the shares at the time of exercise. These shares are typically company stock, allowing employees to directly benefit from the company's performance. The primary objective of the Arkansas Share Appreciation Rights Plan is to incentivize and reward employees for their contributions to the company's success. By tying their rewards to the company's stock performance, the plan encourages employees to actively work towards enhancing the company's financial performance, increasing its share value, and ultimately, their own compensation. The SAR Plan can be amended to cater to the specific needs and preferences of a company. Some common amendments that companies may consider include: 1. Performance-Based SARS: This type of amendment links the vesting and exercise of SARS to pre-determined performance goals. It ensures that employees are rewarded only when specific targets, such as revenue growth, net profit margins, or market share, are achieved. Performance-based SARS provide additional motivation for employees to drive the company's success. 2. Time-Vested SARS: This amendment sets a specific period for the SARS to vest, after which employees can exercise their rights. For example, an employee may be entitled to exercise 25% of their granted SARS after one year of service, with the remaining 75% vesting equally over the following three years. Time-vested SARS promote employee retention and loyalty by incentivizing them to remain with the company for a longer duration. 3. Change in Control (CIC) Protection: This amendment is designed to safeguard employees' interests in the event of a change in control or acquisition of the company. It ensures that employees can exercise their SARS and benefit from the appreciation in share value even if the company is acquired or merged with another entity. In conclusion, the Arkansas Share Appreciation Rights Plan is a valuable tool for companies to motivate and reward their employees. By offering employees the opportunity to share in the company's growth and success, the plan aligns their interests with those of the organization and fosters a culture of ownership and commitment. Through amendments such as performance-based SARS, time-vested SARS, and CIC protections, companies can tailor the SAR Plan to meet their unique requirements and effectively drive employee engagement.

Arkansas Share Appreciation Rights Plan: A Comprehensive Overview The Arkansas Share Appreciation Rights Plan (SAR Plan) is a popular employee benefit program implemented by companies operating in the state of Arkansas. This plan enables employees to receive additional compensation in the form of share appreciation rights, which provide them with the opportunity to share in the company's growth and profitability. Under the SAR Plan, employees are granted SARS, which are rights to receive the appreciation in the value of a specified number of company shares over a predetermined period. The appreciation is calculated by subtracting the exercise price (or grant price) from the fair market value of the shares at the time of exercise. These shares are typically company stock, allowing employees to directly benefit from the company's performance. The primary objective of the Arkansas Share Appreciation Rights Plan is to incentivize and reward employees for their contributions to the company's success. By tying their rewards to the company's stock performance, the plan encourages employees to actively work towards enhancing the company's financial performance, increasing its share value, and ultimately, their own compensation. The SAR Plan can be amended to cater to the specific needs and preferences of a company. Some common amendments that companies may consider include: 1. Performance-Based SARS: This type of amendment links the vesting and exercise of SARS to pre-determined performance goals. It ensures that employees are rewarded only when specific targets, such as revenue growth, net profit margins, or market share, are achieved. Performance-based SARS provide additional motivation for employees to drive the company's success. 2. Time-Vested SARS: This amendment sets a specific period for the SARS to vest, after which employees can exercise their rights. For example, an employee may be entitled to exercise 25% of their granted SARS after one year of service, with the remaining 75% vesting equally over the following three years. Time-vested SARS promote employee retention and loyalty by incentivizing them to remain with the company for a longer duration. 3. Change in Control (CIC) Protection: This amendment is designed to safeguard employees' interests in the event of a change in control or acquisition of the company. It ensures that employees can exercise their SARS and benefit from the appreciation in share value even if the company is acquired or merged with another entity. In conclusion, the Arkansas Share Appreciation Rights Plan is a valuable tool for companies to motivate and reward their employees. By offering employees the opportunity to share in the company's growth and success, the plan aligns their interests with those of the organization and fosters a culture of ownership and commitment. Through amendments such as performance-based SARS, time-vested SARS, and CIC protections, companies can tailor the SAR Plan to meet their unique requirements and effectively drive employee engagement.