Nebraska 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

Nebraska Share Appreciation Rights Plan is a compensation program designed to incentivize and reward employees by granting them the right to receive the appreciation in the value of company shares. This article aims to provide a detailed description of what Nebraska Share Appreciation Rights Plan entails, including any amendments that may have been made. Under the Nebraska Share Appreciation Rights Plan, employees are granted a specific number of appreciation rights. These rights provide them with the opportunity to receive the increase in the value of the company's shares over a predetermined period. As the company's stock price rises, employees can exercise their appreciation rights and receive cash, shares, or a combination of both, based on the agreed terms. The main objective of implementing a Share Appreciation Rights Plan is to align employee interests with shareholders' interests. By tying the rewards directly to stock price appreciation, this compensation program promotes employee motivation, retention, and overall performance, as employees have a vested interest in the success of the company. Nebraska Share Appreciation Rights Plan with amendment refers to any modifications or adjustments made to the original Plan. Amendments can be made for various reasons, such as changes in the company's financial situation, market conditions, or regulatory requirements. The amendment may include alterations to the number of appreciation rights granted, the exercise price, vesting periods, or other terms and conditions. Different types of Nebraska Share Appreciation Rights Plans may exist depending on the specific provisions outlined in the Plan and its amendments. Some variations can include: 1. Performance-based Share Appreciation Rights Plan: This type of plan ties the appreciation rights to specific performance targets or metrics. Employees are incentivized to achieve predetermined goals, such as sales targets, revenue growth, or profit margins, in order to exercise their appreciation rights. 2. Time-based Share Appreciation Rights Plan: This plan grants appreciation rights based on an employee's tenure with the company. The longer an employee remains with the company, the greater the number of rights they accrue. This type of plan encourages employee loyalty and long-term commitment. 3. Restricted Share Appreciation Rights Plan: Here, the exercise of appreciation rights is subject to certain restrictions or conditions. For example, employees may need to meet certain performance criteria, such as achieving specific milestones or completing a certain tenure, before being eligible to exercise their rights. In conclusion, Nebraska Share Appreciation Rights Plan is a compensation program granting employees the right to receive the appreciation in the value of the company's shares. With potential amendments, the Plan's terms may be adjusted to suit the company's evolving needs and external circumstances. Variations can arise, such as performance-based, time-based, or restricted Share Appreciation Rights Plans, each serving different purposes to motivate and reward employees.