The Minnesota Directors Stock Appreciation Rights Plan of American Annuity Group, Inc. (AAG) is a compensation program specifically designed for directors of the company. This plan aims to reward and incentivize directors by providing them with stock appreciation rights (SARS) based on the performance and value of AAG's stock. Under this plan, directors have the opportunity to receive the appreciation in the value of AAG's stock over a specified time period. This SARS is granted to directors and are typically subject to certain vesting requirements, which ensure that the directors remain committed and aligned with the long-term success of the company. Key features of the Minnesota Directors Stock Appreciation Rights Plan include: 1. Stock Appreciation Rights (SARS): These are the primary form of compensation offered under the plan. Directors are granted SARS that track the increase in the value of AAG's stock over a predetermined exercise period. The appreciation is typically payable in cash or company stock, depending on the plan's terms. 2. Performance-Based Compensation: The value of SARS is tied to the performance of AAG's stock. If the stock's value increases significantly during the exercise period, directors are rewarded accordingly. This feature promotes the company's growth and aligns the interests of the directors with the shareholders. 3. Vesting Requirements: The plan often includes vesting requirements to ensure a long-term commitment from directors. Vesting means that directors must remain with the company for a specified period before they can exercise their SARS and receive the appreciation. This helps retain experienced directors and encourages their continued dedication to AAG's success. 4. Cash or Stock Payment: When directors exercise their SARS, they may have the option to receive the appreciation in cash or AAG's stock. This flexibility allows directors to choose the option that best suits their financial goals and preferences. It's important to note that while this description outlines the general features of the Minnesota Directors Stock Appreciation Rights Plan of AAG, specific plan details may vary. Various types or variations of the plan may exist, tailored to meet the unique needs and circumstances of the company and its directors. In conclusion, the Minnesota Directors Stock Appreciation Rights Plan of American Annuity Group, Inc. offers an attractive compensation program for directors, providing them with stock appreciation rights linked to the performance of AAG's stock. This plan seeks to align the interests of directors with the long-term success of the company, fostering commitment and incentivizing performance.
Minnesota Directors Stock Appreciation Rights Plan of American Annuity Group, Inc.
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SARs are taxed the same way as non-qualified stock options (NSOs). There are no tax consequences of any kind on either the grant date or when they are vested. However, participants must recognize ordinary income on the spread at the time of exercise. 2 Most employers will also withhold supplemental federal income tax.
Stock Appreciation Right (SAR) entitles an employee, who is a shareholder in a company, to a cash payment proportionate to the appreciation of stock traded on a public exchange market. SAR programs provide companies with the flexibility to structure the compensation scheme in a way that suits their beneficiaries.
?SARs? means stock appreciation rights entitling the holder thereof to receive a cash payment in an amount equal to the appreciation in the Common Shares over a specified period, as set forth in this Plan and in the applicable Grant Agreement.
For example, let's say you were granted stock appreciation rights on 10 shares of your company ABC's stock, valued at $10 per share. Over time, the share price increases from $10 to $12. This means you'd receive $2 per share since that was the increased value.
The part of the change in the value of the stocks held by a business over any period which is due to price changes.
A stock appreciation right (SAR) entitles an employee to the appreciation in value of a specified number of shares of employer stock over an ?exercise price? or ?grant price? over a specified period of time. The base price generally is equal to the underlying stock's fair market value on the date of grant.
A Stock Appreciation Right (SAR) refers to the right to be paid compensation equivalent to an increase in the company's common stock price over a base or the value of appreciation of the equity shares currently being traded on the public market.
A stock appreciation right is a form of incentive or deferred compensation that ties part of your income to the performance of your company's stock. It gives you the right to the monetary equivalent of the appreciation in the value of a specified number of shares over a specified period of time.