Puerto Rico 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 Puerto Rico Stock Appreciation Rights Plan of The Todd-AO Corporation is a unique compensation program designed to incentivize and reward employees of the company based in Puerto Rico. This plan provides employees with an opportunity to benefit from the appreciation in the value of the company's stock. The Puerto Rico Stock Appreciation Rights Plan functions by granting eligible employees the right to receive the increase in the value of Todd-AO Corporation's stock over a specified period. This increase is calculated as the difference between the market price of the stock on the date of exercise and the grant price, which is predetermined. Employees can exercise their rights after a certain vesting period, allowing them to participate in the company's growth and profit. There are different types of Puerto Rico Stock Appreciation Rights Plans that The Todd-AO Corporation may offer to its employees. Some variations include: 1. Performance-based Appreciation Rights: In this type of plan, the stock appreciation rights are subject to the fulfillment of specific performance targets or goals set by the company. These targets could be related to financial metrics, operational achievements, or other predetermined objectives. The employees are rewarded with stock appreciation rights only if these targets are met. 2. Time-based Appreciation Rights: This type of plan grants stock appreciation rights to employees based on the length of their employment. The rights typically vest over a specific period, gradually allowing employees to exercise them. For example, an employee might receive 25% of the rights after the first year of employment, with the remaining rights vesting over the subsequent years. 3. Change-in-Control Appreciation Rights: This plan comes into effect in the event of a change in control or ownership of the company. If the company undergoes a merger, acquisition, or other significant corporate transactions, eligible employees may be entitled to exercise their appreciation rights, regardless of the regular vesting schedule. This provides employees with a form of protection and the potential to capitalize on the change. The Puerto Rico Stock Appreciation Rights Plan of The Todd-AO Corporation is an effective tool to attract, retain, and motivate employees by offering them an opportunity to share in the company's success. This plan aligns the interests of the employees with that of the company, enhances employee engagement, and fosters a sense of ownership and loyalty.

The Puerto Rico Stock Appreciation Rights Plan of The Todd-AO Corporation is a unique compensation program designed to incentivize and reward employees of the company based in Puerto Rico. This plan provides employees with an opportunity to benefit from the appreciation in the value of the company's stock. The Puerto Rico Stock Appreciation Rights Plan functions by granting eligible employees the right to receive the increase in the value of Todd-AO Corporation's stock over a specified period. This increase is calculated as the difference between the market price of the stock on the date of exercise and the grant price, which is predetermined. Employees can exercise their rights after a certain vesting period, allowing them to participate in the company's growth and profit. There are different types of Puerto Rico Stock Appreciation Rights Plans that The Todd-AO Corporation may offer to its employees. Some variations include: 1. Performance-based Appreciation Rights: In this type of plan, the stock appreciation rights are subject to the fulfillment of specific performance targets or goals set by the company. These targets could be related to financial metrics, operational achievements, or other predetermined objectives. The employees are rewarded with stock appreciation rights only if these targets are met. 2. Time-based Appreciation Rights: This type of plan grants stock appreciation rights to employees based on the length of their employment. The rights typically vest over a specific period, gradually allowing employees to exercise them. For example, an employee might receive 25% of the rights after the first year of employment, with the remaining rights vesting over the subsequent years. 3. Change-in-Control Appreciation Rights: This plan comes into effect in the event of a change in control or ownership of the company. If the company undergoes a merger, acquisition, or other significant corporate transactions, eligible employees may be entitled to exercise their appreciation rights, regardless of the regular vesting schedule. This provides employees with a form of protection and the potential to capitalize on the change. The Puerto Rico Stock Appreciation Rights Plan of The Todd-AO Corporation is an effective tool to attract, retain, and motivate employees by offering them an opportunity to share in the company's success. This plan aligns the interests of the employees with that of the company, enhances employee engagement, and fosters a sense of ownership and loyalty.