What is a phantom stock option plan?

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.

US Legal Forms
Localized Forms
California
Orange
Proposed book value phantom stock plan with appendices for First...

Orange California Proposed book value phantom stock plan with appendices for First Florida Bank, Inc.

Name: Orange California Proposed book value phantom stock plan with appendices for First Florida Bank, Inc.
Brand: US Legal Forms
Rating: 4.78 (343 reviews)

Category:

Corporations - Public - Incentive Compensation Plans

State:

Multi-State

County:

Orange

Control #:

US-CC-20-161K

Format:

Instant download

Description

This is a multi-state form covering the subject matter of the title.

Mental Health Care Power of Attorney - Sta...

View this form

Agreement for Payment of Unpaid Rent

View this form

How to fill out Orange California Proposed Book Value Phantom Stock Plan With Appendices For First Florida Bank, Inc.?

Creating legal forms is a must in today's world. Nevertheless, you don't always need to seek professional help to draft some of them from the ground up, including Orange Proposed book value phantom stock plan with appendices for First Florida Bank, Inc., with a service like US Legal Forms.

US Legal Forms has over 85,000 templates to select from in different categories varying from living wills to real estate paperwork to divorce documents. All forms are arranged based on their valid state, making the searching process less overwhelming. You can also find detailed materials and tutorials on the website to make any activities related to document completion straightforward.

Here's how to find and download Orange Proposed book value phantom stock plan with appendices for First Florida Bank, Inc..

Go over the document's preview and description (if available) to get a basic idea of what you’ll get after downloading the document.
Ensure that the template of your choice is adapted to your state/county/area since state regulations can affect the validity of some records.
Check the similar document templates or start the search over to locate the correct document.
Click Buy now and register your account. If you already have an existing one, choose to log in.
Choose the option, then a suitable payment method, and purchase Orange Proposed book value phantom stock plan with appendices for First Florida Bank, Inc..
Choose to save the form template in any offered file format.
Visit the My Forms tab to re-download the document.

If you're already subscribed to US Legal Forms, you can locate the needed Orange Proposed book value phantom stock plan with appendices for First Florida Bank, Inc., log in to your account, and download it. Of course, our platform can’t take the place of an attorney completely. If you have to cope with an extremely complicated situation, we recommend using the services of an attorney to examine your form before executing and filing it.

With over 25 years on the market, US Legal Forms became a go-to platform for various legal forms for millions of users. Join them today and get your state-specific paperwork effortlessly!

Form Rating

4.78

Satisfied(343)

Form popularity

FAQ

A Phantom Stock Option Plan, also known as a Stock Appreciation Rights (SAR) plan, is a deferred cash bonus program that creates a similar result as a stock option plan. The sponsoring company determines a phantom stock price through an internal or external valuation of the company.

A phantom stock plan is an employee benefit plan that gives selected employees (senior management) many of the benefits of stock ownership without actually giving them any company stock. This type of plan is sometimes referred to as shadow stock. Rather than getting physical stock, the employee receives mock stock.

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).

Phantom stock payouts are taxable to the employee as ordinary income and deductible to the company. However, they are also subject to complex rules governing deferred compensation that, if not properly followed, can lead to penalty taxes.

Phantom stock generally follows the same accounting rules as all non-qualified deferred compensation plans in that com- panies must take a book expense as the award accrues. For example, a $50,000 award would result in an expense charge divided evenly over the vesting period.

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.

For both phantom stock and SARs, employees are taxed when the right to the benefit is exercised. At that point, the value of the award, minus any consideration paid for it (there usually is none) is taxed as ordinary income to the employee and is deductible by the employer.

Phantom stock is an employee benefit where selected employees receive benefits of stock ownership without the company giving them actual stock. It is worth money just like real stock, and its value rises and falls with the company's actual stock (or what the company is valued at, if it's not a publicly traded company).

A stock appreciation right (SAR) is much like phantom stock, except 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. As with phantom stock, this is normally paid out in cash, but it could be paid in shares.

How do phantom shares work? Phantom schemes normally work in very similar ways to more traditional share incentive schemes, but the payout is in the form of cash, rather than shares. The cash bonus awarded under phantom share schemes is typically based on the uplift in company share value.

Interesting Questions

More info

I attended Army basic training, AIT, then Officer Candidate School after graduation from SDSU. The value of a specified number of shares of the company.The outgoing auditor forces the firm to restate two prior years of earnings, which show less equity and more liabilities on Amerco's books. This planting should be filled out to replace trees that have died. SUMMARY: The FAA is amending its regulations to allow the operation of small unmanned aircraft systems in the National Airspace System. Items 1 - 6 — Hillsborough County, Florida. Real Estate and Facilities Services. The GPO Style Manual will be distributed to libraries in the Federal Depository. Anderegg, C. R.. Sierra Hotel : flying Air Force fighters in the decade after. You can become involved in the.

Orange California Proposed book value phantom stock plan with appendices for First Florida Bank, Inc.

Description

Related forms

Viewed forms

How to fill out Orange California Proposed Book Value Phantom Stock Plan With Appendices For First Florida Bank, Inc.?

Show more info

Form Rating

Form popularity

FAQ

What is a phantom option?

How do phantom stock plans work?

Should I accept phantom stock?

Do you pay taxes on phantom stock?

How do you use phantom stock?

What is a phantom stock option plan?

How are phantom stock plans taxed?

What are phantom shares worth?

What is the difference between phantom stock and stock appreciation rights?

How are phantom shares paid?

Interesting Questions

What is the Orange Proposed book value phantom stock plan?

How does the Orange Proposed book value phantom stock plan work?

Who is eligible for the Orange Proposed book value phantom stock plan?

What are the benefits of participating in the Orange Proposed book value phantom stock plan?

Are there any tax implications associated with the Orange Proposed book value phantom stock plan?

Is there a vesting period in the Orange Proposed book value phantom stock plan?

More info

Trusted and secure by over 3 million people of the world’s leading companies