The Lima Arizona Directors Stock Appreciation Rights Plan is an incentive-based compensation program offered by American Annuity Group, Inc. to its directors in Lima, Arizona. This plan allows eligible directors to receive the appreciation in the value of the company's stock over a specified period. Under the Lima Arizona Directors Stock Appreciation Rights Plan, directors are granted stock appreciation rights (SARS) that entitle them to receive the increase in the company's stock price once exercised. This SARS is typically awarded as a form of performance-based compensation, aimed at aligning the interests of the directors with the shareholders. The plan is designed to motivate and retain valuable directors by tying their compensation directly to the company's performance in the stock market. It incentivizes directors to actively contribute to the growth and success of the company, as their financial rewards are tied to the appreciation of the company's stock value. There may be different types of Lima Arizona Directors Stock Appreciation Rights Plans offered by American Annuity Group, Inc., including: 1. Standard Stock Appreciation Rights Plan: This type of plan grants directors the right to receive the appreciation in the value of the company's stock over a specified period. 2. Performance-Based Stock Appreciation Rights Plan: In this plan, the directors' eligibility to exercise their SARS is contingent upon achieving pre-determined performance targets set by the company. It further encourages directors to drive the company's growth and meet strategic objectives. 3. Time-Vested Stock Appreciation Rights Plan: Under this plan, directors become eligible to exercise their SARS after a certain period of service with the company. It promotes loyalty and long-term commitment among directors. Overall, the Lima Arizona Directors Stock Appreciation Rights Plan provided by American Annuity Group, Inc. is an effective method of incentivizing and rewarding directors for their contributions to the company's performance and success. It aligns their interests with those of the shareholders and fosters a collaborative and growth-oriented environment within the organization.
Pima Arizona Directors Stock Appreciation Rights Plan of American Annuity Group, Inc.
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FAQ
Phantom stock plans and stock appreciation rights (SARs) are two types of stock plans that don't really use stock at all but still reward employees with compensation that is tied to the company's stock performance.
Phantom stock is not a good idea if the company is planning on issuing them to most or all employees, especially if the shares will be paid out when the employee leaves the company or retires. In that case, phantom shares may be ruled illegal because of the Employee Retirement Income and Security Act (ERISA).
Stock appreciation rights (SAR) is a method for companies to give their management or employees a bonus if the company performs well financially. Such a method is called a 'plan'. SARs resemble employee stock options in that the holder/employee benefits from an increase in stock price.
A phantom stock plan is a deferred compensation plan that awards the employee a unit measured by the value of a share of a company's common stock, or, in the case of a limited liability company, by the value of an LLC unit. However, unlike actual stock, the award does not confer equity ownership in the company.
Ownership. With stock appreciation rights, you don't need to buy shares of stock to benefit from an increase in the stock's value. Employee stock options, on the other hand, require you to exercise your right to purchase company stock in order to benefit from any increase in value.
A stock appreciation right (SAR, in short) is a lot like phantom stock. The only difference in this is that it provides the right to the monetary equivalent of the increase in the value of a specified number of shares, over a specified period of time.
A stock appreciation right (SAR) entitles an employee to the appreciation in value of a specified number of shares of employer stock over an ?exercise price? or ?grant price? over a specified period of time. The base price generally is equal to the underlying stock's fair market value on the date of grant.
Stock Appreciation Rights Are Not Securities.
Stock appreciation rights are treated as taxable income when you exercise them. If you receive shares of stock instead of cash, and then decide to sell those shares, you may owe capital gains tax on the appreciated value.
For purposes of financial disclosure, you may value a stock appreciation right based on the difference between the current market value and the grant price. This formula is: (current market value ? grant price) x number of shares = value.