Arkansas Long Term Incentive Program for Senior Management

• Category: Corporations - Public - Incentive Compensation Plans
• State: Multi-State
• Control #: US-CC-20-162L
• Format: Word; Rich Text

Description

20-162L 20-162L . . . Long Term Incentive Program For Senior Management under which Compensation Committee may award (a) stock appreciation rights and (b) performance share units. Performance share units entitle holder to receive cash payment equal to (i) average market price of one share of corporation common stock during December ("Measuring Month") in third calendar year following year in which award is made, plus (ii) aggregate dividends with respect to one share of corporation common stock from January 1 of year in which award is made until last day of Measuring Month. At maturity, number of units initially awarded shall be (i) multiplied by fraction that corresponds to average annual percentage increase or decrease in book value per share of corporation common stock over four year period prior to maturity, and (ii) then further adjusted based on ratio of market value of corporation common stock to its book value as compared to that of comparable electric utility companies The Arkansas Long Term Incentive Program for Senior Management is a comprehensive program aimed at motivating and retaining senior executives within the state's businesses and organizations. Designed to reward exceptional leadership and drive long-term success, this program offers various incentives to senior management teams based on their performance and accomplishments. The primary goal of the Arkansas Long Term Incentive Program for Senior Management is to attract and retain top talent by offering attractive financial incentives and other benefits. By incentivizing senior executives to make long-term commitments to their respective organizations, the program aims to ensure stability, growth, and sustained success for businesses across the state. Key Features: 1. Performance-Based Bonuses: The program offers performance-based bonuses that are tied to achieving predetermined goals and objectives. These bonuses can be awarded annually, biannually, or over an even longer period, often contingent on the executive's tenure and the success of the organization. 2. Stock Options and Restricted Stock Units (RSS): To align the interests of senior management with that of the company's long-term value creation, stock options and RSS may be granted. These equity-based incentives provide an opportunity for executives to share in the success of the business by owning a stake in the company. 3. Deferred Compensation Plans: As part of the program, senior executives may be eligible for deferred compensation plans. This allows executives to defer a portion of their income, which can then be paid out at a later date or after achieving specific milestones, such as retirement or the completion of a long-term project. 4. Phantom Stock Awards: Phantom stock awards are another type of incentive offered under the Arkansas Long Term Incentive Program. These awards provide executives with hypothetical shares that track the company's performance. Once vested, executives receive cash or actual shares equivalent to the increase in the stock's value during the award's duration. 5. Performance Shares: Performance shares are granted to senior management based on specific performance criteria and defined targets. They are structured to motivate executives to achieve key objectives set by the company. Upon reaching the predetermined milestones, executives may be entitled to cash or equity rewards. 6. Long-Term Cash Incentives: This type of incentive provides senior executives with additional cash rewards for their sustained contribution to the organization over an extended period. These incentives may be awarded periodically as a means of recognizing and appreciating long-term commitment and exceptional performance. The Arkansas Long Term Incentive Program for Senior Management is a crucial tool in attracting and retaining experienced, skilled, and committed executives to lead businesses in the state. By implementing a variety of incentive structures, the program actively fosters a positive business environment while encouraging long-term growth and success within Arkansas-based organizations.

The Arkansas Long Term Incentive Program for Senior Management is a comprehensive program aimed at motivating and retaining senior executives within the state's businesses and organizations. Designed to reward exceptional leadership and drive long-term success, this program offers various incentives to senior management teams based on their performance and accomplishments. The primary goal of the Arkansas Long Term Incentive Program for Senior Management is to attract and retain top talent by offering attractive financial incentives and other benefits. By incentivizing senior executives to make long-term commitments to their respective organizations, the program aims to ensure stability, growth, and sustained success for businesses across the state. Key Features: 1. Performance-Based Bonuses: The program offers performance-based bonuses that are tied to achieving predetermined goals and objectives. These bonuses can be awarded annually, biannually, or over an even longer period, often contingent on the executive's tenure and the success of the organization. 2. Stock Options and Restricted Stock Units (RSS): To align the interests of senior management with that of the company's long-term value creation, stock options and RSS may be granted. These equity-based incentives provide an opportunity for executives to share in the success of the business by owning a stake in the company. 3. Deferred Compensation Plans: As part of the program, senior executives may be eligible for deferred compensation plans. This allows executives to defer a portion of their income, which can then be paid out at a later date or after achieving specific milestones, such as retirement or the completion of a long-term project. 4. Phantom Stock Awards: Phantom stock awards are another type of incentive offered under the Arkansas Long Term Incentive Program. These awards provide executives with hypothetical shares that track the company's performance. Once vested, executives receive cash or actual shares equivalent to the increase in the stock's value during the award's duration. 5. Performance Shares: Performance shares are granted to senior management based on specific performance criteria and defined targets. They are structured to motivate executives to achieve key objectives set by the company. Upon reaching the predetermined milestones, executives may be entitled to cash or equity rewards. 6. Long-Term Cash Incentives: This type of incentive provides senior executives with additional cash rewards for their sustained contribution to the organization over an extended period. These incentives may be awarded periodically as a means of recognizing and appreciating long-term commitment and exceptional performance. The Arkansas Long Term Incentive Program for Senior Management is a crucial tool in attracting and retaining experienced, skilled, and committed executives to lead businesses in the state. By implementing a variety of incentive structures, the program actively fosters a positive business environment while encouraging long-term growth and success within Arkansas-based organizations.