The Hawaii Book Value Phantom Stock Plan is a unique compensation program offered by First Florida Banks, Inc. This plan provides employees with an opportunity to earn phantom stocks based on the book value performance of the company. It acts as an incentive for employees to contribute towards the growth and success of First Florida Banks, Inc. The Hawaii Book Value Phantom Stock Plan operates based on certain key principles. Employees are granted phantom stock units, which represent hypothetical shares in the company. These units simulate the value of actual company shares and are tied to the book value of First Florida Banks, Inc. The book value of a company is calculated by subtracting its total liabilities from its total assets, giving a representation of the net worth of the business. The Hawaii Book Value Phantom Stock Plan uses this book value as the benchmark for determining the value of the phantom stocks awarded to employees. Employees participating in the Hawaii Book Value Phantom Stock Plan are granted an initial allocation of phantom stock units. The number of units granted may vary based on factors such as job level, performance, and tenure. As the book value of First Florida Banks, Inc. increases over time, the value of these phantom stocks also increases. Once employees have been awarded phantom stock units, they become eligible to receive payouts. These payouts are usually made upon certain triggering events, such as retirement, resignation, or a predetermined vesting period. The payout value is determined by multiplying the total number of phantom stock units owned by the employee with the current book value per share. It is important to note that the Hawaii Book Value Phantom Stock Plan does not grant employees actual ownership in First Florida Banks, Inc. Instead, it acts as a mechanism for aligning employee interests with the company's performance. By tying the value of phantom stocks to the book value of the company, employees are motivated to contribute to its financial growth and stability. In summary, the Hawaii Book Value Phantom Stock Plan offered by First Florida Banks, Inc. is a compensation program that rewards employees with phantom stocks based on the book value performance of the company. It provides an incentive for employees to contribute towards the growth and success of the organization, aligning their interests with the company's financial well-being.
Hawaii Book Value Phantom Stock Plan of First Florida Banks, Inc.
Description
How to fill out Hawaii Book Value Phantom Stock Plan Of First Florida Banks, Inc.?
If you have to full, down load, or print authorized papers layouts, use US Legal Forms, the biggest selection of authorized varieties, which can be found online. Take advantage of the site`s basic and handy lookup to obtain the paperwork you want. Various layouts for business and person uses are sorted by categories and states, or keywords. Use US Legal Forms to obtain the Hawaii Book Value Phantom Stock Plan of First Florida Banks, Inc. within a couple of clicks.
When you are currently a US Legal Forms client, log in for your accounts and click on the Obtain key to find the Hawaii Book Value Phantom Stock Plan of First Florida Banks, Inc.. You may also gain access to varieties you in the past acquired within the My Forms tab of your respective accounts.
If you are using US Legal Forms the first time, refer to the instructions under:
- Step 1. Make sure you have selected the shape for that proper area/region.
- Step 2. Utilize the Preview option to look through the form`s information. Never forget to learn the explanation.
- Step 3. When you are unsatisfied using the kind, use the Search discipline at the top of the monitor to find other models of your authorized kind template.
- Step 4. Upon having found the shape you want, select the Buy now key. Select the rates plan you like and include your qualifications to sign up to have an accounts.
- Step 5. Procedure the purchase. You can use your credit card or PayPal accounts to complete the purchase.
- Step 6. Choose the formatting of your authorized kind and down load it on your own device.
- Step 7. Complete, revise and print or signal the Hawaii Book Value Phantom Stock Plan of First Florida Banks, Inc..
Each authorized papers template you acquire is yours forever. You may have acces to every kind you acquired within your acccount. Click on the My Forms portion and choose a kind to print or down load again.
Remain competitive and down load, and print the Hawaii Book Value Phantom Stock Plan of First Florida Banks, Inc. with US Legal Forms. There are thousands of professional and state-specific varieties you can use for the business or person requirements.
Form popularity
FAQ
Qualified plans, such as 401(k) programs, are subject to all of the rules and restrictions of ERISA. Nonqualified plans, including most phantom stock plans, are not.
How Phantom Stock Plans Are Taxed. Payments from phantom stock plans are subject to typical income taxes, not capital gains taxes. In turn, companies can deduct phantom plan payouts the year the employee reports the income.
Phantom stock is a contract between an employer and an employee that grants the employee the right to receive a payment based on the value of the employer's stock. When granting phantom stock, the employer does not grant the employee any shares of the employer's stock.
Phantom stock plans are considered ?liability awards? for accounting purposes (assuming they will be settled in cash rather than stock). As such, the sponsoring company must recognize the plan expense ratably over the vesting period. Varying accrual schedules can be found in the market.
The answer involves two variables: (a) the presumed value of the company, and (b) the number of shares to be used in the plan. Once these two answers are known, the phantom share price is calculated as the former (the value) divided by the latter (the number of shares).
Phantom shares are usually paid out when the company gets acquired or IPOes. The phantom shares are paid out in cash for their corresponding value.
If a business is sold, employees that own phantom stock receive money that is equal to the amount they would have received had they owned actual stock in the company. For that reason, it's financially beneficial to employees to own phantom stock, as they don't need to worry about dilution.
The definition of Exit Event used in this form phantom plan complies with Section 409A as the plan is designed so that awards are settled upon an Exit Event or, if earlier, a termination of a participant's employment, which is also a permissible payment event for purposes of Section 409A.