Kentucky Book Value Phantom Stock Plan of First Florida Banks, Inc.

• Category: Corporations - Public - Incentive Compensation Plans
• State: Multi-State
• Control #: US-CC-20-162A
• Format: Word; Rich Text

Description

20-162A 20-162A . . . Book Value Phantom Stock Plan under which Committee of Board of Directors may, from time to time, grant quantity of phantom shares to selected employees, each share being equivalent to one share of corporation common stock. Phantom shares may be exercised at any time within ten years of date of grant (subject to certain limitations in event of termination of employment) Upon exercise, employee is paid cash equal to increase in underlying net book value per share on fully diluted basis of shares between date of grant and date of exercise The Kentucky Book Value Phantom Stock Plan of First Florida Banks, Inc. is a unique compensation plan specifically designed for employees of the bank, providing them with an opportunity to participate in the financial growth of the company. This plan is based on the concept of phantom stock, which grants employees the right to receive a cash payment equivalent to the increase in the value of the company's stock over a given period. However, unlike traditional stock options, employees do not actually own any stock in the company. Instead, they are awarded phantom stock units, also known as phantom shares, which simulate the same financial benefits without the actual ownership. The Kentucky Book Value Phantom Stock Plan calculates the value of the phantom shares based on the book value of the company. Book value refers to the net worth of the company, calculated by subtracting the company's liabilities from its assets. By using this metric, the plan ensures that the rewards are linked to the company's financial performance and growth, providing a fair and transparent compensation structure. Under this plan, the employees receive a certain number of phantom stock units, which represent a notional ownership stake in the company. The value of these units is determined by the book value of the company at the beginning and end of the vesting period. If the book value of the company increases during this period, the employees will receive a cash payment equivalent to the increase in the value of their phantom stock units. The Kentucky Book Value Phantom Stock Plan encourages employees to contribute to the overall success of First Florida Banks, Inc. as their financial interests align with the company's performance. It creates a sense of ownership and motivation among employees, promoting long-term commitment and loyalty. Different types of Kentucky Book Value Phantom Stock Plans may exist within First Florida Banks, Inc., tailored to meet the specific needs of various employee groups. These plans may differ in terms of vesting schedules, eligibility criteria, and the overall structure of the phantom stock units. The variations aim to accommodate the diverse workforce and ensure that the plan remains equitable and inclusive. In summary, the Kentucky Book Value Phantom Stock Plan is an innovative compensation program offered by First Florida Banks, Inc. It grants employees the opportunity to benefit financially from the company's growth without actual ownership. By linking the rewards to the book value of the company, this plan aligns the interests of employees with the overall success of the organization, fostering a culture of shared success and mutual growth.

The Kentucky Book Value Phantom Stock Plan of First Florida Banks, Inc. is a unique compensation plan specifically designed for employees of the bank, providing them with an opportunity to participate in the financial growth of the company. This plan is based on the concept of phantom stock, which grants employees the right to receive a cash payment equivalent to the increase in the value of the company's stock over a given period. However, unlike traditional stock options, employees do not actually own any stock in the company. Instead, they are awarded phantom stock units, also known as phantom shares, which simulate the same financial benefits without the actual ownership. The Kentucky Book Value Phantom Stock Plan calculates the value of the phantom shares based on the book value of the company. Book value refers to the net worth of the company, calculated by subtracting the company's liabilities from its assets. By using this metric, the plan ensures that the rewards are linked to the company's financial performance and growth, providing a fair and transparent compensation structure. Under this plan, the employees receive a certain number of phantom stock units, which represent a notional ownership stake in the company. The value of these units is determined by the book value of the company at the beginning and end of the vesting period. If the book value of the company increases during this period, the employees will receive a cash payment equivalent to the increase in the value of their phantom stock units. The Kentucky Book Value Phantom Stock Plan encourages employees to contribute to the overall success of First Florida Banks, Inc. as their financial interests align with the company's performance. It creates a sense of ownership and motivation among employees, promoting long-term commitment and loyalty. Different types of Kentucky Book Value Phantom Stock Plans may exist within First Florida Banks, Inc., tailored to meet the specific needs of various employee groups. These plans may differ in terms of vesting schedules, eligibility criteria, and the overall structure of the phantom stock units. The variations aim to accommodate the diverse workforce and ensure that the plan remains equitable and inclusive. In summary, the Kentucky Book Value Phantom Stock Plan is an innovative compensation program offered by First Florida Banks, Inc. It grants employees the opportunity to benefit financially from the company's growth without actual ownership. By linking the rewards to the book value of the company, this plan aligns the interests of employees with the overall success of the organization, fostering a culture of shared success and mutual growth.