Cuyahoga Ohio Book Value Phantom Stock Plan of First Florida Banks, Inc.

• Category: Corporations - Public - Incentive Compensation Plans
• State: Multi-State
• County: Cuyahoga
• Control #: US-CC-20-162A
• Format: Word; Rich Text

Description

20-162A 20-162A . . . Book Value Phantom Stock Plan under which Committee of Board of Directors may, from time to time, grant quantity of phantom shares to selected employees, each share being equivalent to one share of corporation common stock. Phantom shares may be exercised at any time within ten years of date of grant (subject to certain limitations in event of termination of employment) Upon exercise, employee is paid cash equal to increase in underlying net book value per share on fully diluted basis of shares between date of grant and date of exercise Cuyahoga Ohio Book Value Phantom Stock Plan is a type of compensation program implemented by the First Florida Banks, Inc. It provides an innovative approach to reward employees based on the company's book value. This plan aims to incentivize and motivate employees while aligning their interests with the financial performance and long-term success of the company. The Cuyahoga Ohio Book Value Phantom Stock Plan operates as a phantom stock program, meaning it grants employees a hypothetical or notional number of stock units tied to the company's book value. These units are tracked and accounted for, similar to real stocks, but without actual ownership. The employees earn additional units based on a predetermined formula, usually tied to the growth of the company's book value over time. This unique compensation structure allows employees to share in the growth and profitability of the First Florida Banks, Inc. even if they do not hold actual company stock. It provides them with a sense of ownership and enhances their commitment to the organization's overall goals. By linking rewards to book value, the plan promotes transparency and financial accountability. It incentivizes employees to contribute towards increasing the company's book value, which ultimately benefits all shareholders. The Cuyahoga Ohio Book Value Phantom Stock Plan of First Florida Banks, Inc. can be categorized into two distinctive types: 1. Standard Book Value Phantom Stock Plan: This variant of the plan provides employees with a fixed number of phantom stock units based on the company's book value at the time of grant. Employees are entitled to earn additional phantom stock units through predetermined growth targets tied to the book value over a specified period. The accumulation of these units determines the final payout upon an employee's departure from the company, retirement, or another qualified event. 2. Performance-based Book Value Phantom Stock Plan: In this more advanced version, the plan utilizes a tiered system based on performance goals. Employees are granted a base number of phantom stock units, and the potential for additional units is contingent upon the achievement of specific milestones tied to the book value growth. As employees reach and surpass these milestones, they earn more phantom stock units, enhancing the ultimate payout upon an employee's exit. In conclusion, the Cuyahoga Ohio Book Value Phantom Stock Plan of First Florida Banks, Inc. serves as an innovative compensation program that rewards employees based on the company's book value growth. With different variations available, it provides flexibility to align employee interests with the financial success of the organization, promoting a performance-driven culture and overall employee satisfaction.

Cuyahoga Ohio Book Value Phantom Stock Plan is a type of compensation program implemented by the First Florida Banks, Inc. It provides an innovative approach to reward employees based on the company's book value. This plan aims to incentivize and motivate employees while aligning their interests with the financial performance and long-term success of the company. The Cuyahoga Ohio Book Value Phantom Stock Plan operates as a phantom stock program, meaning it grants employees a hypothetical or notional number of stock units tied to the company's book value. These units are tracked and accounted for, similar to real stocks, but without actual ownership. The employees earn additional units based on a predetermined formula, usually tied to the growth of the company's book value over time. This unique compensation structure allows employees to share in the growth and profitability of the First Florida Banks, Inc. even if they do not hold actual company stock. It provides them with a sense of ownership and enhances their commitment to the organization's overall goals. By linking rewards to book value, the plan promotes transparency and financial accountability. It incentivizes employees to contribute towards increasing the company's book value, which ultimately benefits all shareholders. The Cuyahoga Ohio Book Value Phantom Stock Plan of First Florida Banks, Inc. can be categorized into two distinctive types: 1. Standard Book Value Phantom Stock Plan: This variant of the plan provides employees with a fixed number of phantom stock units based on the company's book value at the time of grant. Employees are entitled to earn additional phantom stock units through predetermined growth targets tied to the book value over a specified period. The accumulation of these units determines the final payout upon an employee's departure from the company, retirement, or another qualified event. 2. Performance-based Book Value Phantom Stock Plan: In this more advanced version, the plan utilizes a tiered system based on performance goals. Employees are granted a base number of phantom stock units, and the potential for additional units is contingent upon the achievement of specific milestones tied to the book value growth. As employees reach and surpass these milestones, they earn more phantom stock units, enhancing the ultimate payout upon an employee's exit. In conclusion, the Cuyahoga Ohio Book Value Phantom Stock Plan of First Florida Banks, Inc. serves as an innovative compensation program that rewards employees based on the company's book value growth. With different variations available, it provides flexibility to align employee interests with the financial success of the organization, promoting a performance-driven culture and overall employee satisfaction.