Illinois 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 Illinois Share Appreciation Rights Plan (SARS) with Amendment is a compensation program that allows employees of Illinois-based companies to benefit from the future increase in the company's stock price. SARS is a type of equity-based incentive that provides employees the right to receive cash, equal to the appreciation in the company's stock value. This plan aims at motivating employees, aligning their interests with the company's performance, and creating a sense of shared ownership. The SARS plan typically includes an amendment, which serves as a modification or addition to the original plan. Amendments are made to accommodate changes in the company's structure, ownership, or other circumstances that affect the functioning of the SARS program. There are different types of Illinois Share Appreciation Rights Plan with amendment, categorized based on various factors. These may include: 1. Performance-Based SARS: In this type of plan, employees earn SARS based on the achievement of specific performance goals or targets. The appreciation in stock value is linked to predetermined metrics such as revenue growth, profitability, or market share. 2. Time-Vested SARS: With this plan, employees receive SARS that vest over a certain period of time. The longer an employee stays with the company, the more SARS they accumulate, providing a long-term incentive to retain talented individuals. 3. Cash-Settled SARS: In this variation, employees receive cash payments equivalent to the appreciation in the company's stock value rather than actual shares. This allows employees to benefit from stock price increases without needing to exercise stock options or holding shares directly. 4. Equity-Settled SARS: Unlike cash-settled SARS, equity-settled SARS provide employees with actual shares of stock upon exercise. This enables employees to share in the company's ownership and value while retaining the freedom to sell the shares when they desire. The Illinois Share Appreciation Rights Plan with amendment offers companies flexibility in tailoring the plan to meet the specific needs of their business and employees. Amendments may address changes in performance metrics, vesting periods, eligibility criteria, or any other aspect of the plan deemed necessary. It's important for companies to consult legal and financial professionals to ensure compliance with relevant laws and regulations when implementing or amending SARS plans in the state of Illinois.

Illinois Share Appreciation Rights Plan (SARS) with Amendment is a compensation program that allows employees of Illinois-based companies to benefit from the future increase in the company's stock price. SARS is a type of equity-based incentive that provides employees the right to receive cash, equal to the appreciation in the company's stock value. This plan aims at motivating employees, aligning their interests with the company's performance, and creating a sense of shared ownership. The SARS plan typically includes an amendment, which serves as a modification or addition to the original plan. Amendments are made to accommodate changes in the company's structure, ownership, or other circumstances that affect the functioning of the SARS program. There are different types of Illinois Share Appreciation Rights Plan with amendment, categorized based on various factors. These may include: 1. Performance-Based SARS: In this type of plan, employees earn SARS based on the achievement of specific performance goals or targets. The appreciation in stock value is linked to predetermined metrics such as revenue growth, profitability, or market share. 2. Time-Vested SARS: With this plan, employees receive SARS that vest over a certain period of time. The longer an employee stays with the company, the more SARS they accumulate, providing a long-term incentive to retain talented individuals. 3. Cash-Settled SARS: In this variation, employees receive cash payments equivalent to the appreciation in the company's stock value rather than actual shares. This allows employees to benefit from stock price increases without needing to exercise stock options or holding shares directly. 4. Equity-Settled SARS: Unlike cash-settled SARS, equity-settled SARS provide employees with actual shares of stock upon exercise. This enables employees to share in the company's ownership and value while retaining the freedom to sell the shares when they desire. The Illinois Share Appreciation Rights Plan with amendment offers companies flexibility in tailoring the plan to meet the specific needs of their business and employees. Amendments may address changes in performance metrics, vesting periods, eligibility criteria, or any other aspect of the plan deemed necessary. It's important for companies to consult legal and financial professionals to ensure compliance with relevant laws and regulations when implementing or amending SARS plans in the state of Illinois.