The New Jersey Phantom Stock Plan of Hercules, Inc. is a unique incentive program designed to reward its employees with benefits associated with stock ownership, without them actually owning any company shares. The plan is designed to motivate and retain talented individuals by providing them with the opportunity to share in the company's financial success. Hercules, Inc., a leading chemical company based in New Jersey, offers several variations of the Phantom Stock Plan to cater to different employee levels and objectives. These variations include: 1. Executive Phantom Stock Plan: This plan is designed specifically for top-level executives within Hercules, Inc. It offers enhanced benefits and is tailored to align with the company's long-term strategic goals. Executives participating in this plan are provided with a phantom stock account that mirrors the value of the company's actual stock. 2. Senior Management Phantom Stock Plan: This plan targets senior managers who play a crucial role in the company's operations and decision-making processes. It provides them with similar benefits to the Executive Phantom Stock Plan but with slightly different terms and conditions. 3. Employee Phantom Stock Plan: This all-encompassing plan is available to all employees of Hercules, Inc. regardless of their position within the company. It serves as an effective tool to motivate and engage employees at all levels by offering the benefits and rewards associated with stock ownership. Keywords: New Jersey, Phantom Stock Plan, Hercules, Inc., incentive program, stock ownership, financial success, motivate, retain, talented individuals, employee levels, top-level executives, long-term strategic goals, senior management, decision-making processes, all-encompassing plan, engage, rewards.
New Jersey Phantom Stock Plan of Hercules, Inc.
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How to fill out New Jersey Phantom Stock Plan Of Hercules, Inc.?
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FAQ
Phantom shares usually get liquid when the company gets acquired or goes public or if the company decides to do a buyback. Any gains from the assets must be reported to tax authorities as ordinary income upon vesting.
The answer involves two variables: (a) the presumed value of the company, and (b) the number of shares to be used in the plan. Once these two answers are known, the phantom share price is calculated as the former (the value) divided by the latter (the number of shares).
If a business is sold, employees that own phantom stock receive money that is equal to the amount they would have received had they owned actual stock in the company. For that reason, it's financially beneficial to employees to own phantom stock, as they don't need to worry about dilution.
Expiration Date: The Expiration Date for each Phantom Share depends on whether it has vested. Where the Phantom Share has not vested pursuant to the Vesting Schedule below, the Expiration Date is the earlier of: (i) the Liquidity Event Deadline or (ii) the date of termination of Participant's Continuous Service.
Since the benefits of phantom stocks can only be contingent upon the company's performance or predetermined benchmarks, employees with phantom stocks will not get the cash payout if the company does not meet the benchmark. Phantom stocks cannot be freely traded or transferred.
Phantom stock is a contract between an employer and an employee that grants the employee the right to receive a payment based on the value of the employer's stock. When granting phantom stock, the employer does not grant the employee any shares of the employer's stock.
While not stock in the company, phantom stock is worth money just like real stock? its value rises and falls with the company's actual stock (or what the company is valued at, if it's not a publicly traded company). Employees are paid out profits at the end of a pre-determined length of time.
Summary. A phantom stock plan refers to a type of deferred employee compensation plan where plan participants benefit from the upside of a company's share price without actually receiving company shares. In a phantom stock plan, upon redemption of phantom stock, the plan participant receives cash compensation.
Phantom stock generally represents a company's unsecured and unfunded promise to make a payment to an employee or other service provider upon certain specified events (e.g., change in control or termination of employment) equal to the value of a specified number of shares of the company.