Illinois Proposed book value phantom stock plan with appendices for First Florida Bank, Inc.

• Category: Corporations - Public - Incentive Compensation Plans
• State: Multi-State
• Control #: US-CC-20-161K
• Format: Word; Rich Text

Description

This is a multi-state form covering the subject matter of the title. Illinois Proposed Book Value Phantom Stock Plan with Appendices for First Florida Bank, Inc. — Detailed Description Introduction: The Illinois Proposed Book Value Phantom Stock Plan with Appendices for First Florida Bank, Inc. is a comprehensive compensation plan designed to incentivize and reward key employees of the bank by providing them with virtual shares tied to the book value of the institution. This plan allows employees to participate in the bank's growth and success without actual ownership, making it an effective tool for employee retention and motivation. The following description provides an overview and highlights key components of the plan, along with its appendices. 1. Plan Structure: The Book Value Phantom Stock Plan is divided into several elements to ensure transparency, equity, and adherence to regulations. These components include eligibility criteria, vesting schedule, valuation methodology, payout provisions, and administration guidelines. 2. Eligibility Criteria: To participate in the plan, employees must meet certain eligibility criteria such as job position, employment length, and performance requirements. Typically, key executives, senior managers, and high-performing employees are included. 3. Vesting Schedule: The plan incorporates a vesting schedule outlining the gradual acquisition of virtual stock over a specified time period. This incentivizes long-term commitment to the bank, as employees gain ownership rights to increasing amounts of virtual shares over time. 4. Valuation Methodology: The book value of an institution represents the net worth of its assets minus liabilities, providing a solid foundation for measuring growth and value. The plan's appendices outline the specific valuation methodology used to calculate the book value and determine the corresponding value of the virtual shares. 5. Payout Provisions: Virtual stock under the plan is subject to conversion into cash or actual shares upon certain triggering events. These events can include retirement, disability, death, change in control of the bank, or defined periods such as the end of the plan's term. The appendices provide clear guidelines on how these events are defined and the payout calculations. 6. Administration Guidelines: The plan's appendices provide detailed information on the administrative aspects, including processes for enrollment, ongoing management, communication, and coordination with accounting and legal departments. These guidelines ensure efficient plan operation and compliance with relevant regulations. Types of Illinois Proposed Book Value Phantom Stock Plan: 1. Executive Additional Retirement Plan: This plan variant focuses on providing additional retirement benefits to key executives by allowing them to accumulate virtual shares alongside their existing retirement plans. The appendices for this type would include provisions specific to retirement and payout calculations during the retirement phase. 2. Performance-Based Incentive Plan: This plan variant emphasizes the link between performance and rewards. It incorporates performance metrics to determine the extent of virtual shares granted to employees. The appendices for this type would provide detailed information about performance criteria, scoring methodology, and payout calculations based on performance achievements. Conclusion: The Illinois Proposed Book Value Phantom Stock Plan with its appendices offers First Florida Bank, Inc. a strategic compensation tool to attract, motivate, and retain key employees. By aligning incentives with the bank's book value, this plan ensures that employees actively contribute to the institution's growth and success, fostering a highly engaged workforce.

Illinois Proposed Book Value Phantom Stock Plan with Appendices for First Florida Bank, Inc. — Detailed Description Introduction: The Illinois Proposed Book Value Phantom Stock Plan with Appendices for First Florida Bank, Inc. is a comprehensive compensation plan designed to incentivize and reward key employees of the bank by providing them with virtual shares tied to the book value of the institution. This plan allows employees to participate in the bank's growth and success without actual ownership, making it an effective tool for employee retention and motivation. The following description provides an overview and highlights key components of the plan, along with its appendices. 1. Plan Structure: The Book Value Phantom Stock Plan is divided into several elements to ensure transparency, equity, and adherence to regulations. These components include eligibility criteria, vesting schedule, valuation methodology, payout provisions, and administration guidelines. 2. Eligibility Criteria: To participate in the plan, employees must meet certain eligibility criteria such as job position, employment length, and performance requirements. Typically, key executives, senior managers, and high-performing employees are included. 3. Vesting Schedule: The plan incorporates a vesting schedule outlining the gradual acquisition of virtual stock over a specified time period. This incentivizes long-term commitment to the bank, as employees gain ownership rights to increasing amounts of virtual shares over time. 4. Valuation Methodology: The book value of an institution represents the net worth of its assets minus liabilities, providing a solid foundation for measuring growth and value. The plan's appendices outline the specific valuation methodology used to calculate the book value and determine the corresponding value of the virtual shares. 5. Payout Provisions: Virtual stock under the plan is subject to conversion into cash or actual shares upon certain triggering events. These events can include retirement, disability, death, change in control of the bank, or defined periods such as the end of the plan's term. The appendices provide clear guidelines on how these events are defined and the payout calculations. 6. Administration Guidelines: The plan's appendices provide detailed information on the administrative aspects, including processes for enrollment, ongoing management, communication, and coordination with accounting and legal departments. These guidelines ensure efficient plan operation and compliance with relevant regulations. Types of Illinois Proposed Book Value Phantom Stock Plan: 1. Executive Additional Retirement Plan: This plan variant focuses on providing additional retirement benefits to key executives by allowing them to accumulate virtual shares alongside their existing retirement plans. The appendices for this type would include provisions specific to retirement and payout calculations during the retirement phase. 2. Performance-Based Incentive Plan: This plan variant emphasizes the link between performance and rewards. It incorporates performance metrics to determine the extent of virtual shares granted to employees. The appendices for this type would provide detailed information about performance criteria, scoring methodology, and payout calculations based on performance achievements. Conclusion: The Illinois Proposed Book Value Phantom Stock Plan with its appendices offers First Florida Bank, Inc. a strategic compensation tool to attract, motivate, and retain key employees. By aligning incentives with the bank's book value, this plan ensures that employees actively contribute to the institution's growth and success, fostering a highly engaged workforce.