Iowa 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 Iowa Share Appreciation Rights Plan, commonly referred to as SARS, is a compensation plan that is frequently offered by companies to their employees as a way to incentivize and reward their contributions. SARS allow participants to benefit from the increase in the company's stock value over a specified period of time. The Iowa Share Appreciation Rights Plan is designed to grant employees the right to receive cash or stock payments, based on the appreciation in the company's stock price. This means that if the stock price increases during the predetermined period, the employee will be eligible for a payout equal to the difference between the grant price and the market value of the stock. Amendments to the Iowa Share Appreciation Rights Plan may be implemented to customize the plan to meet the specific needs of the company and its employees. These amendments can include changes to the grant price calculation, eligibility criteria, vesting periods, performance goals, and settlement methods. There are different types of Iowa Share Appreciation Rights Plans with amendments that companies may choose to adopt based on their individual circumstances. Some common variations include: 1. Performance-Based SARS: This type of SAR plan imposes certain performance goals or targets that must be met for participants to receive the benefits. Performance criteria may be based on the company's financial performance, revenue growth, market share, or other relevant indicators. 2. Time-Vested SARS: In this type of plan, SARS are granted to employees and gradually become exercisable over a specific period of time. For example, an employee might receive SARS that vest equally over a three-year period, allowing them to exercise a portion of the SARS each year. 3. Cash-Settled SARS: Instead of receiving stock, participants in this type of SAR plan are entitled to receive a cash payment equivalent to the appreciation in the company's stock price. Cash-settled SARS are particularly beneficial for employees who prefer cash to stock ownership. 4. Full-Value SARS: Unlike traditional SARS, which are generally only granted the right to receive the appreciation value, full-value SARS grant participants the additional right to receive the full value of the underlying stock upon exercise. This means that participants not only benefit from the increase in stock price but also receive the entire value of the stock. 5. Reload SARS: With this type of SAR plan, participants are granted additional SARS automatically when they exercise their existing SARS. This provides an ongoing incentive for employees to continue participating in the plan and stay motivated to contribute to the company's success. 6. Limited SARS: Limited SARS have a predetermined term or expiration date. Once this date is reached, exercised SARS expire and are no longer eligible for exercise. These plans often encourage timely exercise and ensure that participants actively engage with the plan. In conclusion, the Iowa Share Appreciation Rights Plan with amendments offers companies an effective means to motivate and reward their employees. By tailoring the plan to match their specific requirements, businesses can create a comprehensive compensation strategy that aligns with their goals and objectives.

Iowa Share Appreciation Rights Plan, commonly referred to as SARS, is a compensation plan that is frequently offered by companies to their employees as a way to incentivize and reward their contributions. SARS allow participants to benefit from the increase in the company's stock value over a specified period of time. The Iowa Share Appreciation Rights Plan is designed to grant employees the right to receive cash or stock payments, based on the appreciation in the company's stock price. This means that if the stock price increases during the predetermined period, the employee will be eligible for a payout equal to the difference between the grant price and the market value of the stock. Amendments to the Iowa Share Appreciation Rights Plan may be implemented to customize the plan to meet the specific needs of the company and its employees. These amendments can include changes to the grant price calculation, eligibility criteria, vesting periods, performance goals, and settlement methods. There are different types of Iowa Share Appreciation Rights Plans with amendments that companies may choose to adopt based on their individual circumstances. Some common variations include: 1. Performance-Based SARS: This type of SAR plan imposes certain performance goals or targets that must be met for participants to receive the benefits. Performance criteria may be based on the company's financial performance, revenue growth, market share, or other relevant indicators. 2. Time-Vested SARS: In this type of plan, SARS are granted to employees and gradually become exercisable over a specific period of time. For example, an employee might receive SARS that vest equally over a three-year period, allowing them to exercise a portion of the SARS each year. 3. Cash-Settled SARS: Instead of receiving stock, participants in this type of SAR plan are entitled to receive a cash payment equivalent to the appreciation in the company's stock price. Cash-settled SARS are particularly beneficial for employees who prefer cash to stock ownership. 4. Full-Value SARS: Unlike traditional SARS, which are generally only granted the right to receive the appreciation value, full-value SARS grant participants the additional right to receive the full value of the underlying stock upon exercise. This means that participants not only benefit from the increase in stock price but also receive the entire value of the stock. 5. Reload SARS: With this type of SAR plan, participants are granted additional SARS automatically when they exercise their existing SARS. This provides an ongoing incentive for employees to continue participating in the plan and stay motivated to contribute to the company's success. 6. Limited SARS: Limited SARS have a predetermined term or expiration date. Once this date is reached, exercised SARS expire and are no longer eligible for exercise. These plans often encourage timely exercise and ensure that participants actively engage with the plan. In conclusion, the Iowa Share Appreciation Rights Plan with amendments offers companies an effective means to motivate and reward their employees. By tailoring the plan to match their specific requirements, businesses can create a comprehensive compensation strategy that aligns with their goals and objectives.