Hawaii 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 Hawaii Share Appreciation Rights Plan with Amendment: A Comprehensive Overview The Hawaii Share Appreciation Rights (SAR) Plan is a unique program designed to provide employees in Hawaii with an opportunity to share in the success of their company. SARS is a form of equity-based compensation that allows employees to benefit from the increase in the company's stock price. The SARS plan in Hawaii operates by granting employees the right to receive cash or stock equal to the appreciation in the company's stock value over a specific period. This period can range from one to several years, depending on the terms of the plan. The appreciation is calculated based on the predetermined grant price and the current market value of the stock. The main objective of the SARS plan is to align the interests of the employees and the company's shareholders. By granting employees the right to participate in the growth of the company, employers aim to motivate and retain talented individuals, fostering a sense of ownership and loyalty among the workforce. The Hawaii Share Appreciation Rights Plan can be further categorized into different types, based on the amendments made to the original plan: 1. Performance-Based SAR Plan: This type of plan takes into account the individual or company-wide performance metrics for determining the SAR awards. The employee's eligibility to receive SARS is linked to achieving specific goals, such as meeting revenue targets, increasing market share, or achieving certain profitability milestones. 2. Time-Based SAR Plan: In this plan, the eligibility for SARS is solely dependent on the employee's tenure with the company. Employees receive SARS over a predetermined vesting period, typically ranging from three to five years. By encouraging loyalty and long-term commitment, this plan aims to reward employees for their dedication to the organization. 3. Reload SAR Plan: Under this plan, employees who exercise their SARS are automatically granted new SARS. This reload feature ensures that employees can continue to benefit from future appreciation in the company's stock price even after exercising their initial SARS. It serves as an incentive to retain employees and keep them motivated, as they can continually participate in the company's growth. 4. Cash SAR Plan: Rather than receiving stock, employees under this plan are entitled to receive the appreciation in cash. Cash-based SARS allow employees to participate in the company's success without assuming the risks associated with stock ownership. This type of plan may also be beneficial in cases where employees prefer a more immediate cash reward. In conclusion, the Hawaii Share Appreciation Rights Plan with amendment offers various options for companies to implement an effective equity-based compensation program. By tailoring these plans to align with the company's objectives and employee preferences, businesses in Hawaii can incentivize their workforce, foster employee loyalty, and enhance overall performance.

Hawaii Share Appreciation Rights Plan with Amendment: A Comprehensive Overview The Hawaii Share Appreciation Rights (SAR) Plan is a unique program designed to provide employees in Hawaii with an opportunity to share in the success of their company. SARS is a form of equity-based compensation that allows employees to benefit from the increase in the company's stock price. The SARS plan in Hawaii operates by granting employees the right to receive cash or stock equal to the appreciation in the company's stock value over a specific period. This period can range from one to several years, depending on the terms of the plan. The appreciation is calculated based on the predetermined grant price and the current market value of the stock. The main objective of the SARS plan is to align the interests of the employees and the company's shareholders. By granting employees the right to participate in the growth of the company, employers aim to motivate and retain talented individuals, fostering a sense of ownership and loyalty among the workforce. The Hawaii Share Appreciation Rights Plan can be further categorized into different types, based on the amendments made to the original plan: 1. Performance-Based SAR Plan: This type of plan takes into account the individual or company-wide performance metrics for determining the SAR awards. The employee's eligibility to receive SARS is linked to achieving specific goals, such as meeting revenue targets, increasing market share, or achieving certain profitability milestones. 2. Time-Based SAR Plan: In this plan, the eligibility for SARS is solely dependent on the employee's tenure with the company. Employees receive SARS over a predetermined vesting period, typically ranging from three to five years. By encouraging loyalty and long-term commitment, this plan aims to reward employees for their dedication to the organization. 3. Reload SAR Plan: Under this plan, employees who exercise their SARS are automatically granted new SARS. This reload feature ensures that employees can continue to benefit from future appreciation in the company's stock price even after exercising their initial SARS. It serves as an incentive to retain employees and keep them motivated, as they can continually participate in the company's growth. 4. Cash SAR Plan: Rather than receiving stock, employees under this plan are entitled to receive the appreciation in cash. Cash-based SARS allow employees to participate in the company's success without assuming the risks associated with stock ownership. This type of plan may also be beneficial in cases where employees prefer a more immediate cash reward. In conclusion, the Hawaii Share Appreciation Rights Plan with amendment offers various options for companies to implement an effective equity-based compensation program. By tailoring these plans to align with the company's objectives and employee preferences, businesses in Hawaii can incentivize their workforce, foster employee loyalty, and enhance overall performance.