The Kansas Share Appreciation Rights Plan with amendment is a financial incentive program designed to reward employees and key individuals within a company based in the state of Kansas. This plan offers participants the opportunity to receive additional compensation in the form of share appreciation rights (SARS). The Kansas Share Appreciation Rights Plan operates by granting participants the right to receive cash or stock equal to the increase in value of a specified number of shares over a predetermined period. SARS are usually granted alongside company stock options and are subject to vesting periods and specific performance criteria. The plan aims to align the interests of employees with shareholders by motivating participants to contribute to the company's success and financial performance. By granting SARS, employers provide individuals with the ability to benefit from potential stock price appreciation over time. As the company's stock value increases, participants can exercise their rights and receive compensation equal to the increase in value. The Kansas Share Appreciation Rights Plan may include several types of amendments, each serving different purposes and accommodating unique circumstances. Some common types include: 1. Performance-based SARS: These amendments link the SARS' vesting and payout to the achievement of predetermined performance goals. Participants are only eligible to exercise their SARS if specific targets (such as revenue growth or profitability) are met or surpassed. Performance-based SARS contribute to fostering a culture of high performance and incentivize individuals to actively contribute to the company's success. 2. Time-based SARS: These amendments typically grant participants the right to exercise their SARS after a specific period, often referred to as a vesting period. This type of amendment encourages long-term commitment and retention within the organization, as participants must remain with the company until the vesting conditions are met. Time-based SARS provide individuals with an additional financial stake in the company's growth over an extended period. 3. Change-in-control provisions: These amendments are triggered when the company undergoes a change of ownership or control, such as a merger or acquisition. Change-in-control provisions accelerate the vesting of SARS, allowing participants to exercise their rights in a shorter timeframe. This provision ensures participants are rewarded for their contributions to the company even in situations where the company's ownership structure changes. 4. Cash or stock-settled SARS: These amendments allow participants to choose between receiving cash or company stock upon exercising their SARS. Cash-settled SARS provide immediate monetary value, while stock-settled SARS allow participants to become shareholders and benefit from any further appreciation in the company's stock value. The Kansas Share Appreciation Rights Plan, with its various amendments, serves as an attractive incentive program for companies in Kansas, encouraging employee engagement, performance, and long-term commitment. By aligning the interests of participants with the company's financial goals, the plan aims to foster a culture of shared success and reward individuals for their contributions.
Kansas Share Appreciation Rights Plan with amendment
Category:
State:
Multi-State
Control #:
US-CC-18-400D
Format:
Word;
Rich Text
Instant download
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
The Kansas Share Appreciation Rights Plan with amendment is a financial incentive program designed to reward employees and key individuals within a company based in the state of Kansas. This plan offers participants the opportunity to receive additional compensation in the form of share appreciation rights (SARS). The Kansas Share Appreciation Rights Plan operates by granting participants the right to receive cash or stock equal to the increase in value of a specified number of shares over a predetermined period. SARS are usually granted alongside company stock options and are subject to vesting periods and specific performance criteria. The plan aims to align the interests of employees with shareholders by motivating participants to contribute to the company's success and financial performance. By granting SARS, employers provide individuals with the ability to benefit from potential stock price appreciation over time. As the company's stock value increases, participants can exercise their rights and receive compensation equal to the increase in value. The Kansas Share Appreciation Rights Plan may include several types of amendments, each serving different purposes and accommodating unique circumstances. Some common types include: 1. Performance-based SARS: These amendments link the SARS' vesting and payout to the achievement of predetermined performance goals. Participants are only eligible to exercise their SARS if specific targets (such as revenue growth or profitability) are met or surpassed. Performance-based SARS contribute to fostering a culture of high performance and incentivize individuals to actively contribute to the company's success. 2. Time-based SARS: These amendments typically grant participants the right to exercise their SARS after a specific period, often referred to as a vesting period. This type of amendment encourages long-term commitment and retention within the organization, as participants must remain with the company until the vesting conditions are met. Time-based SARS provide individuals with an additional financial stake in the company's growth over an extended period. 3. Change-in-control provisions: These amendments are triggered when the company undergoes a change of ownership or control, such as a merger or acquisition. Change-in-control provisions accelerate the vesting of SARS, allowing participants to exercise their rights in a shorter timeframe. This provision ensures participants are rewarded for their contributions to the company even in situations where the company's ownership structure changes. 4. Cash or stock-settled SARS: These amendments allow participants to choose between receiving cash or company stock upon exercising their SARS. Cash-settled SARS provide immediate monetary value, while stock-settled SARS allow participants to become shareholders and benefit from any further appreciation in the company's stock value. The Kansas Share Appreciation Rights Plan, with its various amendments, serves as an attractive incentive program for companies in Kansas, encouraging employee engagement, performance, and long-term commitment. By aligning the interests of participants with the company's financial goals, the plan aims to foster a culture of shared success and reward individuals for their contributions.
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