Kentucky 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 Kentucky Share Appreciation Rights Plan (SAR): A Comprehensive Overview and Amendment Types Introduction to Kentucky Share Appreciation Rights Plan: The Kentucky Share Appreciation Rights Plan (SAR) is an employee compensation program designed to reward employees for the growth and success of a company's stock value. It is often used as a supplement to stock option plans or other equity-based compensation plans. This plan grants employees the right to receive cash or stock payments based on the appreciation in the company's stock price over a specified period. The SAR program offers significant benefits to both employers and employees, promoting motivation, loyalty, and a sense of ownership among the workforce. Overview of Kentucky SAR with Amendment: The Kentucky SAR program can be further enhanced by implementing specific amendments tailored to meet the unique needs of a company and its employees. The amendment provisions allow companies to introduce additional flexibility and modify certain aspects of the SAR program to align it with the organization's goals and objectives. These amendments typically cover various elements, including eligibility criteria, vesting schedules, cash or stock settlement options, and valuation methodologies. Types of Kentucky Share Appreciation Rights Plan Amendments: 1. Eligibility Amendment: Companies may choose to redefine the eligibility criteria to include specific employee groups or exclude certain individuals depending on their operational requirements. This amendment ensures that the SAR program targets employees who contribute significantly to the company's growth and aligns with the organizational structure. 2. Vesting Schedule Amendment: The SAR program typically employs a vesting schedule where employees earn the right to exercise their SARS over a predefined period. Companies have the opportunity to amend the vesting schedule, such as accelerating or extending the vesting period, to incentivize employee retention or align with long-term business objectives. 3. Cash or Stock Settlement Amendment: The original SAR plan may define a default settlement method, either cash or stock. However, companies can introduce an amendment giving participants the flexibility to choose their preferred settlement method. This allows employees to customize their compensation based on their financial needs or investment strategies. 4. Valuation Methodology Amendment: The SAR amendment provisions also permit companies to modify the valuation methodology used to calculate the appreciation in stock value. For example, the plan may choose to calculate the stock appreciation based on the average closing price during a specified period rather than the current market value. This modification ensures fairness in valuing the rights and prevents a sudden spike or drop in stock prices from improperly influencing the SAR payout. Conclusion: The Kentucky Share Appreciation Rights Plan with amendments provides a flexible framework for companies to tailor their SAR programs to suit their particular business and employee requirements. By utilizing these amendment types, businesses can fine-tune eligibility criteria, vesting schedules, settlement options, and valuation methodologies to create a fair and motivating compensation plan. Implementing a well-structured SAR program demonstrates a commitment to employee growth, productivity, and overall success, fostering a company culture of appreciation and engagement.

Kentucky Share Appreciation Rights Plan (SAR): A Comprehensive Overview and Amendment Types Introduction to Kentucky Share Appreciation Rights Plan: The Kentucky Share Appreciation Rights Plan (SAR) is an employee compensation program designed to reward employees for the growth and success of a company's stock value. It is often used as a supplement to stock option plans or other equity-based compensation plans. This plan grants employees the right to receive cash or stock payments based on the appreciation in the company's stock price over a specified period. The SAR program offers significant benefits to both employers and employees, promoting motivation, loyalty, and a sense of ownership among the workforce. Overview of Kentucky SAR with Amendment: The Kentucky SAR program can be further enhanced by implementing specific amendments tailored to meet the unique needs of a company and its employees. The amendment provisions allow companies to introduce additional flexibility and modify certain aspects of the SAR program to align it with the organization's goals and objectives. These amendments typically cover various elements, including eligibility criteria, vesting schedules, cash or stock settlement options, and valuation methodologies. Types of Kentucky Share Appreciation Rights Plan Amendments: 1. Eligibility Amendment: Companies may choose to redefine the eligibility criteria to include specific employee groups or exclude certain individuals depending on their operational requirements. This amendment ensures that the SAR program targets employees who contribute significantly to the company's growth and aligns with the organizational structure. 2. Vesting Schedule Amendment: The SAR program typically employs a vesting schedule where employees earn the right to exercise their SARS over a predefined period. Companies have the opportunity to amend the vesting schedule, such as accelerating or extending the vesting period, to incentivize employee retention or align with long-term business objectives. 3. Cash or Stock Settlement Amendment: The original SAR plan may define a default settlement method, either cash or stock. However, companies can introduce an amendment giving participants the flexibility to choose their preferred settlement method. This allows employees to customize their compensation based on their financial needs or investment strategies. 4. Valuation Methodology Amendment: The SAR amendment provisions also permit companies to modify the valuation methodology used to calculate the appreciation in stock value. For example, the plan may choose to calculate the stock appreciation based on the average closing price during a specified period rather than the current market value. This modification ensures fairness in valuing the rights and prevents a sudden spike or drop in stock prices from improperly influencing the SAR payout. Conclusion: The Kentucky Share Appreciation Rights Plan with amendments provides a flexible framework for companies to tailor their SAR programs to suit their particular business and employee requirements. By utilizing these amendment types, businesses can fine-tune eligibility criteria, vesting schedules, settlement options, and valuation methodologies to create a fair and motivating compensation plan. Implementing a well-structured SAR program demonstrates a commitment to employee growth, productivity, and overall success, fostering a company culture of appreciation and engagement.