Bronx New York Stock Appreciation Rights Plan of The Todd-AO Corporation

• Category: Corporations - Public - Stock Options
• State: Multi-State
• County: Bronx
• 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 Todd-AO Corporation, based in Bronx, New York, offers a comprehensive Stock Appreciation Rights (SAR) Plan to its employees. This incentive plan aims to reward and motivate employees by providing them with the opportunity to benefit from the growth in the company's stock price. Under the Bronx New York Stock Appreciation Rights Plan, eligible employees are granted SARS, which entitle them to a payment equal to the increase in the value of the Todd-AO Corporation's stock over a predetermined period. This period typically spans from the date of grant until the date of exercise or expiration, as determined by the plan's terms. The SARS granted to employees are typically subject to vesting, which means employees must fulfill certain conditions, such as a predetermined period of employment or achieving specific performance targets, in order to become eligible to exercise their rights. Once vested, employees have the flexibility to exercise their SARS at their discretion, usually within a specified timeframe. The Todd-AO Corporation may also offer different types of Stock Appreciation Rights Plans, tailored to meet the specific needs and goals of different employee groups. These variations could include: 1. Performance-Based SARS: This type of SAR plan rewards employees based on the company's performance metrics. It may be tied to financial targets, revenue growth, market share, or other key performance indicators. When the predetermined performance targets are met, employees become eligible to exercise their SARS. 2. Time-Based SARS: This plan grants SARS to employees based on their length of service with the company. Employees gradually become vested in their SARS over a specific period, such as three to five years. This type of plan emphasizes employee retention and loyalty. 3. Board-Approved SARS: In some cases, the Todd-AO Corporation may extend SARS to members of its board of directors. This serves as an additional compensation tool to attract and retain experienced directors, aligning their interests with the company's long-term success. The Todd-AO Corporation's Bronx New York Stock Appreciation Rights Plan has proven to be an effective means of incentivizing and rewarding employees. By linking employees' financial gain directly to the company's stock performance, it aligns their interests with those of the shareholders. This not only motivates employees to contribute to the company's success but also creates a sense of ownership and involvement in its growth.