New York Stock Appreciation Rights Plan of The Todd-AO Corporation

• Category: Corporations - Public - Stock Options
• State: Multi-State
• Control #: US-CC-18-403A
• Format: Word; Rich Text

Description

18-403A 18-403A . . . Stock Appreciation Rights Plan which provides for granting of (a) SARs to employees, directors and consultants and (b) limited stock appreciation rights to persons who are subject to Section 16 of Exchange Act. Limited rights have same terms and conditions as SARs except that limited rights are automatically exercised on date established, without any action on part of grantee, which is at least six months after grant of limited right. To extent limited right is exercised, related SAR is canceled and vice versa. The purpose of limited right is to provide grantees who are subject to short swing profit recovery provisions of Exchange Act with benefits associated with exercise of SARs even though exercise occurs outside of "window period" prescribed by SEC The Todd-AO Corporation, a prominent New York-based company, offers its employees a rewarding compensation plan known as the New York Stock Appreciation Rights (SAR) Plan. This comprehensive program aims to attract and retain talented professionals by providing them with valuable incentives tied to the company's stock performance. Let's explore the intricacies of this plan and the various types it offers. 1. Overview of the New York Stock Appreciation Rights Plan: The New York Stock Appreciation Rights Plan is a well-structured incentive initiative designed by The Todd-AO Corporation. It enables eligible employees to receive additional compensation in the form of stock appreciation rights. These rights grant employees the opportunity to benefit directly from any increase in the company's stock value over a specific period. 2. Advantages and Goals of the Plan: The Todd-AO Corporation's New York Stock Appreciation Rights Plan aims to align the interests of its employees with the company's shareholders. By allowing employees to partake in the company's stock appreciation, it encourages a sense of ownership and accountability among the workforce. This increases employee motivation, loyalty, and engagement, fostering a culture of shared success. 3. Types of New York Stock Appreciation Rights Plans: a) Performance-Based Stock Appreciation Rights: This type of New York Stock Appreciation Rights Plan sets specific performance goals for employees to achieve in order to earn stock appreciation rights. These goals are predetermined by The Todd-AO Corporation and typically revolve around financial targets, market share, or individual/team performance objectives. b) Time-Based Stock Appreciation Rights: In this variant of the New York Stock Appreciation Rights Plan, stock appreciation rights are granted to eligible employees based on the duration of their employment with The Todd-AO Corporation. For example, an employee might gain a certain percentage of the rights each year of continuous service, reaching their full allocation after a specific timeframe. c) Combination Stock Appreciation Rights: The Todd-AO Corporation also offers a combination of both performance-based and time-based stock appreciation rights. This type of plan takes into account both an employee's individual performance and their longevity with the company to allocate stock appreciation rights. It ensures that employees are rewarded for their consistent dedication while also incentivizing exceptional achievements. 4. Vesting and Exercise of Stock Appreciation Rights: Typically, the stock appreciation rights granted under The Todd-AO Corporation's New York Stock Appreciation Rights Plan vest over a defined period. Vesting signifies the timeframe during which an employee must remain with the company to gain ownership of the rights. Once vested, employees can exercise their rights and receive the financial benefits associated with the increase in the company's stock price. In conclusion, The Todd-AO Corporation's New York Stock Appreciation Rights Plan serves as a powerful tool to attract, motivate, and retain talented professionals. Through its performance-based, time-based, and combination stock appreciation rights, the program enables employees to share in the company's success and further aligns their interests with the organization's growth.

The Todd-AO Corporation, a prominent New York-based company, offers its employees a rewarding compensation plan known as the New York Stock Appreciation Rights (SAR) Plan. This comprehensive program aims to attract and retain talented professionals by providing them with valuable incentives tied to the company's stock performance. Let's explore the intricacies of this plan and the various types it offers. 1. Overview of the New York Stock Appreciation Rights Plan: The New York Stock Appreciation Rights Plan is a well-structured incentive initiative designed by The Todd-AO Corporation. It enables eligible employees to receive additional compensation in the form of stock appreciation rights. These rights grant employees the opportunity to benefit directly from any increase in the company's stock value over a specific period. 2. Advantages and Goals of the Plan: The Todd-AO Corporation's New York Stock Appreciation Rights Plan aims to align the interests of its employees with the company's shareholders. By allowing employees to partake in the company's stock appreciation, it encourages a sense of ownership and accountability among the workforce. This increases employee motivation, loyalty, and engagement, fostering a culture of shared success. 3. Types of New York Stock Appreciation Rights Plans: a) Performance-Based Stock Appreciation Rights: This type of New York Stock Appreciation Rights Plan sets specific performance goals for employees to achieve in order to earn stock appreciation rights. These goals are predetermined by The Todd-AO Corporation and typically revolve around financial targets, market share, or individual/team performance objectives. b) Time-Based Stock Appreciation Rights: In this variant of the New York Stock Appreciation Rights Plan, stock appreciation rights are granted to eligible employees based on the duration of their employment with The Todd-AO Corporation. For example, an employee might gain a certain percentage of the rights each year of continuous service, reaching their full allocation after a specific timeframe. c) Combination Stock Appreciation Rights: The Todd-AO Corporation also offers a combination of both performance-based and time-based stock appreciation rights. This type of plan takes into account both an employee's individual performance and their longevity with the company to allocate stock appreciation rights. It ensures that employees are rewarded for their consistent dedication while also incentivizing exceptional achievements. 4. Vesting and Exercise of Stock Appreciation Rights: Typically, the stock appreciation rights granted under The Todd-AO Corporation's New York Stock Appreciation Rights Plan vest over a defined period. Vesting signifies the timeframe during which an employee must remain with the company to gain ownership of the rights. Once vested, employees can exercise their rights and receive the financial benefits associated with the increase in the company's stock price. In conclusion, The Todd-AO Corporation's New York Stock Appreciation Rights Plan serves as a powerful tool to attract, motivate, and retain talented professionals. Through its performance-based, time-based, and combination stock appreciation rights, the program enables employees to share in the company's success and further aligns their interests with the organization's growth.