New Hampshire Long Term Incentive Program for Senior Management

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US-CC-20-162L
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20-162L 20-162L . . . Long Term Incentive Program For Senior Management under which Compensation Committee may award (a) stock appreciation rights and (b) performance share units. Performance share units entitle holder to receive cash payment equal to (i) average market price of one share of corporation common stock during December ("Measuring Month") in third calendar year following year in which award is made, plus (ii) aggregate dividends with respect to one share of corporation common stock from January 1 of year in which award is made until last day of Measuring Month. At maturity, number of units initially awarded shall be (i) multiplied by fraction that corresponds to average annual percentage increase or decrease in book value per share of corporation common stock over four year period prior to maturity, and (ii) then further adjusted based on ratio of market value of corporation common stock to its book value as compared to that of comparable electric utility companies

The New Hampshire Long Term Incentive Program for Senior Management is a unique initiative aimed at attracting and retaining top talent in organizations within the state. This program seeks to encourage and reward senior executives for their long-term dedication, contribution, and commitment to the growth and success of their respective organizations. By offering attractive incentives, companies can motivate their senior management team to align their goals with the company's strategic objectives. One type of the New Hampshire Long Term Incentive Program for Senior Management is the Performance-based Stock Options Plan. This plan allows senior executives to purchase company stock at a predetermined price, known as the strike price, within a specified time frame. The stock options are typically granted over a multi-year period, encouraging long-term commitment and performance-driven results. As the company's stock value increases, executives can exercise their options, selling the stock at a profit. Another type of program is the Restricted Stock Units (RSS) plan. Under this arrangement, senior managers are granted a specified number of company shares, which are subject to a vesting schedule. The vesting period can span over several years, ensuring that executives remain committed to the company's long-term success. Once the vesting requirements are met, executives gain ownership of the stock units, providing them with a stake in the company's performance. Additionally, some organizations may offer Performance Cash Bonus Plans as part of the New Hampshire Long Term Incentive Program for Senior Management. These plans are designed to reward executives based on specific performance metrics, such as financial targets, profitability, or revenue growth. A portion of the executive's bonus may be deferred and paid out over the long term, promoting sustained performance and encouraging managers to enhance company value throughout their tenure. By implementing the New Hampshire Long Term Incentive Program for Senior Management, organizations can foster a culture of loyalty and engagement among their top executives. This program acknowledges the critical role senior managers play in driving sustainable growth and allows them to benefit directly from the company's success. The various types of programs, such as Performance-based Stock Options, Restricted Stock Units, and Performance Cash Bonus Plans, cater to different senior management preferences while aligning their individual goals with the long-term success of the organization.

The New Hampshire Long Term Incentive Program for Senior Management is a unique initiative aimed at attracting and retaining top talent in organizations within the state. This program seeks to encourage and reward senior executives for their long-term dedication, contribution, and commitment to the growth and success of their respective organizations. By offering attractive incentives, companies can motivate their senior management team to align their goals with the company's strategic objectives. One type of the New Hampshire Long Term Incentive Program for Senior Management is the Performance-based Stock Options Plan. This plan allows senior executives to purchase company stock at a predetermined price, known as the strike price, within a specified time frame. The stock options are typically granted over a multi-year period, encouraging long-term commitment and performance-driven results. As the company's stock value increases, executives can exercise their options, selling the stock at a profit. Another type of program is the Restricted Stock Units (RSS) plan. Under this arrangement, senior managers are granted a specified number of company shares, which are subject to a vesting schedule. The vesting period can span over several years, ensuring that executives remain committed to the company's long-term success. Once the vesting requirements are met, executives gain ownership of the stock units, providing them with a stake in the company's performance. Additionally, some organizations may offer Performance Cash Bonus Plans as part of the New Hampshire Long Term Incentive Program for Senior Management. These plans are designed to reward executives based on specific performance metrics, such as financial targets, profitability, or revenue growth. A portion of the executive's bonus may be deferred and paid out over the long term, promoting sustained performance and encouraging managers to enhance company value throughout their tenure. By implementing the New Hampshire Long Term Incentive Program for Senior Management, organizations can foster a culture of loyalty and engagement among their top executives. This program acknowledges the critical role senior managers play in driving sustainable growth and allows them to benefit directly from the company's success. The various types of programs, such as Performance-based Stock Options, Restricted Stock Units, and Performance Cash Bonus Plans, cater to different senior management preferences while aligning their individual goals with the long-term success of the organization.

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How does a long-term incentive plan work? An LTIP works by rewarding employees (usually senior employees) with cash or shares of company stock for meeting specific goals. The goals are usually long-term, running for 3-5 years to stimulate ongoing progress rather than a-few-months objectives.

Remuneration Value This is the target value to be provided in equity. In the case of LTI grants it is usually calculated as Base Package x Target LTI%. Thus, if an executive had a Base Package of $200,000 and the target LTI was set at 30% then the Remuneration Value would be $60,000.

Short-term incentives are typically tied to annual performance goals, while long-term incentives are designed to reward performance over a multi-year period.

term incentive plan (LTIP) is a company policy that rewards employees for reaching specific goals that lead to increased shareholder value. In a typical LTIP, the employee, usually an executive, must fulfill various conditions or requirements.

Long-term incentives, or LTI as they're often called, are a valuable part of a total compensation package both for delivering rewards and focusing employees on desired future outcomes and objectives.

Through LTIPs, a new long-term incentive can be granted to an employee every year, rather than a one-time incentive, similar to a holiday bonus.

LTI are typically granted with what is known as a vesting period. What this means is that grantees are conditionally granted equity, but they do not actually own it until the vesting period expires.

Long-term incentives are earned based on the achievement of goals over a longer period of time. The goals may be based on stock price or business performance. It's important to take a holistic approach to compensation ? if it's short- or long-term, cash vs.

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New Hampshire Long Term Incentive Program for Senior Management