District of Columbia Share Appreciation Rights Plan with amendment

• Category: Corporations - Public - Stock Options
• State: Multi-State
• Control #: US-CC-18-400D
• Format: Word; Rich Text

Description

18-400D 18-400D . . . Share Appreciation Rights Plan under which stock option committee determines to whom units are awarded, number of units to be awarded and terms of such units. On grant date, committee assigns each unit a base value which cannot be less than market value of share of common stock on that date. Each award becomes exercisable with respect to 25% of units awarded on each of first four anniversaries of grant date, provided grantee has been continually employed full-time by corporation or subsidiary. Units may be exercised, to extent vested, at any time until five years after grant date. Upon exercise of vested units, grantee is entitled to receive net appreciation of such units in cash or in shares of common stock, as determined by committee

The District of Columbia Share Appreciation Rights Plan with amendment is a comprehensive compensation plan developed for employees of companies operating within the District of Columbia. This plan aims to provide employees with additional benefits and incentives by granting them share appreciation rights (SARS), which are typically linked to the company's stock performance. By offering this SARS, employers can motivate and reward their employees for their hard work and dedication. The District of Columbia Share Appreciation Rights Plan with amendment enables employees to receive financial gains based on the increase in the company's stock price over a specific period. It operates similarly to stock options, but without the employees having to purchase the shares upfront. Instead, employees receive the appreciation in the stock's value as a cash bonus or in equivalent shares. This plan is regulated and subject to the laws and stipulations outlined by the District of Columbia government. It aims to provide a fair and transparent system for distributing benefits among employees and promoting a positive work environment. Various types of the District of Columbia Share Appreciation Rights Plan exist, each with its own specific features and amendments. Here are a few common types: 1. Performance-Based SARS: This SARS is granted to employees based on predetermined performance criteria. They are usually tied to the company's achievement of specific financial goals, operational targets, or individual performance metrics. 2. Time-Based SARS: This SARS is granted to employees subject to a predefined vesting schedule. Employees typically need to stay with the company for a certain number of years before they can exercise their SARS. 3. Limited SARS: In this variant of the plan, employees are granted a predetermined number of SARS, which may be lower than other types. However, they are designed to provide a targeted group of employees with significant benefits based on exceptional performance or retention needs. 4. Cash-Settled SARS: In contrast to equity-settled SARS, cash-settled SARS are settled in cash equivalent to the appreciation in the stock price. This type of SAR is ideal for employees who prefer immediate financial rewards rather than acquiring company shares. The District of Columbia Share Appreciation Rights Plan with amendment acknowledges the dynamic nature of compensation structures and allows companies to tailor the plan according to their specific needs. Overall, this plan serves as a valuable tool for attracting and retaining top talent, aligning employee interests with company growth, and fostering a culture of performance and dedication within District of Columbia-based businesses.