Washington 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 Washington Stock Appreciation Rights Plan is a key component of The Todd-AO Corporation's comprehensive employee compensation and benefits program. It is designed to incentivize and reward employees for their contributions to the company's growth and success. This plan allows eligible employees to receive stock appreciation rights (SARS) that enable them to benefit from the appreciation of the company's stock without actually having to purchase or hold any shares. Under the Washington Stock Appreciation Rights Plan, employees are granted a SAR, which represents the right to receive a cash payment equal to the appreciation in the value of a specified number of Todd-AO Corporation shares over a predetermined period. The appreciation is calculated based on the increase in the fair market value of the shares from the date of grant to the date of exercise. This means that employees can potentially earn a significant financial reward if the company's stock price rises during the specified period. One of the main advantages of this plan is that it aligns the interests of employees with those of the company's shareholders. By tying employees' compensation directly to the company's stock performance, it encourages them to work towards improving the company's financial results and creating long-term value for shareholders. Furthermore, SARS offer favorable tax treatment compared to traditional stock options, making them an attractive alternative for both the company and its employees. The Washington Stock Appreciation Rights Plan of The Todd-AO Corporation may have different variations or sub-plans tailored to specific employee groups or levels within the organization. This could include plans for executives, senior management, or different divisions within the company. Each variation would have its own specific terms, such as the number of SARS granted, the exercise price, vesting schedule, and other conditions. Overall, the Washington Stock Appreciation Rights Plan of The Todd-AO Corporation serves as a powerful tool to attract, motivate, and retain talented employees, fostering a culture of high-performance and alignment with the company's long-term growth objectives. It provides employees with a direct financial stake in the success of the company, promoting a sense of ownership and driving them to deliver superior results.

The Washington Stock Appreciation Rights Plan is a key component of The Todd-AO Corporation's comprehensive employee compensation and benefits program. It is designed to incentivize and reward employees for their contributions to the company's growth and success. This plan allows eligible employees to receive stock appreciation rights (SARS) that enable them to benefit from the appreciation of the company's stock without actually having to purchase or hold any shares. Under the Washington Stock Appreciation Rights Plan, employees are granted a SAR, which represents the right to receive a cash payment equal to the appreciation in the value of a specified number of Todd-AO Corporation shares over a predetermined period. The appreciation is calculated based on the increase in the fair market value of the shares from the date of grant to the date of exercise. This means that employees can potentially earn a significant financial reward if the company's stock price rises during the specified period. One of the main advantages of this plan is that it aligns the interests of employees with those of the company's shareholders. By tying employees' compensation directly to the company's stock performance, it encourages them to work towards improving the company's financial results and creating long-term value for shareholders. Furthermore, SARS offer favorable tax treatment compared to traditional stock options, making them an attractive alternative for both the company and its employees. The Washington Stock Appreciation Rights Plan of The Todd-AO Corporation may have different variations or sub-plans tailored to specific employee groups or levels within the organization. This could include plans for executives, senior management, or different divisions within the company. Each variation would have its own specific terms, such as the number of SARS granted, the exercise price, vesting schedule, and other conditions. Overall, the Washington Stock Appreciation Rights Plan of The Todd-AO Corporation serves as a powerful tool to attract, motivate, and retain talented employees, fostering a culture of high-performance and alignment with the company's long-term growth objectives. It provides employees with a direct financial stake in the success of the company, promoting a sense of ownership and driving them to deliver superior results.