The Tennessee Book Value Phantom Stock Plan of First Florida Banks, Inc. is a unique and innovative compensation program offered by the bank to reward and incentivize its employees. This plan is specifically designed to provide employees with a share in the future growth and success of the bank, based on the book value of the bank's assets. Under this plan, eligible employees are granted phantom stock units that represent a specific monetary value tied to the book value of the bank. The book value of the bank is calculated by subtracting its liabilities from its total assets. The employees receive these units as a form of deferred compensation, which will be paid out upon retirement, resignation, or another qualifying event. One of the main advantages of the Tennessee Book Value Phantom Stock Plan is that it allows employees to benefit from the overall growth and profitability of the bank without requiring them to purchase actual shares of stock or invest their own money. This makes it an attractive option for employees who may not have the financial means to invest in traditional stock options or who prefer a less risky investment strategy. Furthermore, the plan offers employees the flexibility to convert their phantom stock units into cash upon a qualifying event, such as retirement or resignation. This provides them with a financial reward that aligns with the long-term success of the bank. It is important to note that there may be different types of Tennessee Book Value Phantom Stock Plan options available within First Florida Banks, Inc. These options could include variations such as vesting periods, performance-based criteria, or specific eligibility requirements for participation. The bank may also provide additional benefits or incentives to employees who choose to participate in the plan, such as matching contributions or bonus opportunities tied to the plan's performance. In summary, the Tennessee Book Value Phantom Stock Plan is a valuable compensation program offered by First Florida Banks, Inc. to its employees, providing them with a unique opportunity to participate in the bank's growth and success through phantom stock units tied to the book value of the bank. With various options and flexibility, this plan offers a rewarding and enticing prospect for employees seeking long-term financial benefits.
Tennessee Book Value Phantom Stock Plan of First Florida Banks, Inc.
Description
How to fill out Book Value Phantom Stock Plan Of First Florida Banks, Inc.?
If you want to comprehensive, down load, or print out legal papers web templates, use US Legal Forms, the most important selection of legal varieties, which can be found online. Make use of the site`s easy and convenient research to get the papers you need. A variety of web templates for business and specific reasons are categorized by classes and says, or key phrases. Use US Legal Forms to get the Tennessee Book Value Phantom Stock Plan of First Florida Banks, Inc. in just a handful of mouse clicks.
When you are presently a US Legal Forms client, log in to your profile and click the Obtain button to find the Tennessee Book Value Phantom Stock Plan of First Florida Banks, Inc.. You may also access varieties you in the past downloaded in the My Forms tab of the profile.
If you use US Legal Forms the first time, follow the instructions listed below:
- Step 1. Make sure you have chosen the shape for your correct area/region.
- Step 2. Use the Preview option to look through the form`s information. Never forget about to read through the explanation.
- Step 3. When you are not satisfied together with the type, make use of the Search field near the top of the screen to discover other models of the legal type template.
- Step 4. Upon having located the shape you need, go through the Acquire now button. Pick the costs plan you favor and add your references to register to have an profile.
- Step 5. Procedure the transaction. You may use your credit card or PayPal profile to perform the transaction.
- Step 6. Find the structure of the legal type and down load it in your product.
- Step 7. Comprehensive, edit and print out or indicator the Tennessee Book Value Phantom Stock Plan of First Florida Banks, Inc..
Each and every legal papers template you acquire is yours for a long time. You may have acces to every type you downloaded with your acccount. Select the My Forms portion and select a type to print out or down load again.
Compete and down load, and print out the Tennessee Book Value Phantom Stock Plan of First Florida Banks, Inc. with US Legal Forms. There are many specialist and state-certain varieties you can use for your personal business or specific demands.
Form popularity
FAQ
How Phantom Stock Plans Are Taxed. Payments from phantom stock plans are subject to typical income taxes, not capital gains taxes. In turn, companies can deduct phantom plan payouts the year the employee reports the income.
The definition of Exit Event used in this form phantom plan complies with Section 409A as the plan is designed so that awards are settled upon an Exit Event or, if earlier, a termination of a participant's employment, which is also a permissible payment event for purposes of Section 409A.
Phantom stock plans are considered ?liability awards? for accounting purposes (assuming they will be settled in cash rather than stock). As such, the sponsoring company must recognize the plan expense ratably over the vesting period. Varying accrual schedules can be found in the market.
Qualified plans, such as 401(k) programs, are subject to all of the rules and restrictions of ERISA. Nonqualified plans, including most phantom stock plans, are not.
Phantom shares are usually paid out when the company gets acquired or IPOes. The phantom shares are paid out in cash for their corresponding value.
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).
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.
A cash payment from Company A as the difference between the current common share price and phantom stock issue price: ($70 ? $50) x 500 = $10,000; or. A cash payment from Company A equal to the current common share price: $50 x 500 = $25,000.