Rhode Island 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 Rhode Island Share Appreciation Rights Plan (SHARP) is a compensation program designed by companies to provide eligible employees with additional financial incentives beyond their regular salaries. It aims to reward employees for contributing to the company's growth, increasing shareholder value, and fostering employee ownership. The SHARP operates by granting employees the right to receive cash or company stock equivalent to the increase in value of a specified number of shares over a predetermined time period. This increase in value is commonly referred to as the "appreciation." These rights are granted either freely or at a discounted price. One notable type of Rhode Island Share Appreciation Rights Plan is the Performance-Based SHARP. The Performance-Based SHARP incorporates performance metrics, such as achieving certain financial targets or market share goals. Employees are rewarded based on their contributions to meeting these objectives, reinforcing a results-oriented culture within the organization. Another type of SHARP is the Phantom Stock Appreciation Rights Plan. Unlike traditional stock options, this plan does not actually grant employees any ownership in the company. Instead, employees receive hypothetical units or "phantom stock" that track the company's stock price. Thus, employees are entitled to receive the increased value of the phantom stock as cash or company shares. An amended version of the Rhode Island Share Appreciation Rights Plan entails modifications or additions to the original plan. Amendments may involve changes to the vesting schedule, pricing, eligibility criteria, payout options, or any other aspect of the plan. Companies often opt for amendments to better align the plan with their evolving business priorities or to comply with any regulatory changes. In summary, Rhode Island Share Appreciation Rights Plan is a compensation program that rewards employees based on the appreciation in value of company shares. This incentivizes employees to contribute to company growth and align their interests with those of the shareholders. Various types of SHARP, such as Performance-Based SHARP and Phantom Stock Appreciation Rights Plan, provide flexibility in designing a plan that suits the company's objectives. Amendments to the plan allow customization and aligning the plan with changing business dynamics.

Rhode Island Share Appreciation Rights Plan (SHARP) is a compensation program designed by companies to provide eligible employees with additional financial incentives beyond their regular salaries. It aims to reward employees for contributing to the company's growth, increasing shareholder value, and fostering employee ownership. The SHARP operates by granting employees the right to receive cash or company stock equivalent to the increase in value of a specified number of shares over a predetermined time period. This increase in value is commonly referred to as the "appreciation." These rights are granted either freely or at a discounted price. One notable type of Rhode Island Share Appreciation Rights Plan is the Performance-Based SHARP. The Performance-Based SHARP incorporates performance metrics, such as achieving certain financial targets or market share goals. Employees are rewarded based on their contributions to meeting these objectives, reinforcing a results-oriented culture within the organization. Another type of SHARP is the Phantom Stock Appreciation Rights Plan. Unlike traditional stock options, this plan does not actually grant employees any ownership in the company. Instead, employees receive hypothetical units or "phantom stock" that track the company's stock price. Thus, employees are entitled to receive the increased value of the phantom stock as cash or company shares. An amended version of the Rhode Island Share Appreciation Rights Plan entails modifications or additions to the original plan. Amendments may involve changes to the vesting schedule, pricing, eligibility criteria, payout options, or any other aspect of the plan. Companies often opt for amendments to better align the plan with their evolving business priorities or to comply with any regulatory changes. In summary, Rhode Island Share Appreciation Rights Plan is a compensation program that rewards employees based on the appreciation in value of company shares. This incentivizes employees to contribute to company growth and align their interests with those of the shareholders. Various types of SHARP, such as Performance-Based SHARP and Phantom Stock Appreciation Rights Plan, provide flexibility in designing a plan that suits the company's objectives. Amendments to the plan allow customization and aligning the plan with changing business dynamics.