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
Kentucky Book Value Phantom Stock Plan of First Florida Banks, Inc.
State:
Multi-State
Control #:
US-CC-20-162A
Format:
Word;
Rich Text
Instant download
Description
Free preview
How to fill out Book Value Phantom Stock Plan Of First Florida Banks, Inc.?
Have you been within a placement in which you require documents for both organization or specific functions just about every day? There are plenty of legal document web templates available on the net, but discovering kinds you can rely on isn`t easy. US Legal Forms provides a huge number of form web templates, like the Kentucky Book Value Phantom Stock Plan of First Florida Banks, Inc., which are created to satisfy federal and state needs.
When you are previously acquainted with US Legal Forms website and have your account, simply log in. Next, you may down load the Kentucky Book Value Phantom Stock Plan of First Florida Banks, Inc. format.
If you do not offer an profile and want to begin using US Legal Forms, adopt these measures:
- Find the form you require and make sure it is for your right area/region.
- Use the Review key to review the shape.
- See the explanation to actually have selected the right form.
- When the form isn`t what you are searching for, make use of the Look for field to obtain the form that meets your needs and needs.
- Whenever you discover the right form, simply click Purchase now.
- Choose the prices plan you would like, fill in the desired details to generate your account, and pay money for the order with your PayPal or charge card.
- Choose a convenient document file format and down load your backup.
Find all the document web templates you possess purchased in the My Forms menu. You can obtain a further backup of Kentucky Book Value Phantom Stock Plan of First Florida Banks, Inc. anytime, if possible. Just click the required form to down load or printing the document format.
Use US Legal Forms, by far the most substantial assortment of legal types, in order to save time and avoid errors. The support provides expertly produced legal document web templates that can be used for a range of functions. Create your account on US Legal Forms and initiate producing your lifestyle easier.
Form popularity
FAQ
The answer involves two variables: (a) the presumed value of the company, and (b) the number of shares to be used in the plan. Once these two answers are known, the phantom share price is calculated as the former (the value) divided by the latter (the number of shares).
Phantom stock plans are considered ?liability awards? for accounting purposes (assuming they will be settled in cash rather than stock). As such, the sponsoring company must recognize the plan expense ratably over the vesting period. Varying accrual schedules can be found in the market.
Phantom stock plans are considered ?liability awards? for accounting purposes (assuming they will be settled in cash rather than stock).
A cash payment from Company A as the difference between the current common share price and phantom stock issue price: ($70 ? $50) x 500 = $10,000; or. A cash payment from Company A equal to the current common share price: $50 x 500 = $25,000.
Phantom shares are usually paid out when the company gets acquired or IPOes. The phantom shares are paid out in cash for their corresponding value.
However, phantom stocks come with a considerable amount of disadvantages that can diminish participants' perceived control and influence, strain company liquidity, require extensive administrative efforts, introduce tax complexities, create disagreements, and subject participants to volatility in financial benefits ...
As a default, this form plan provides for forfeiture of all unvested phantom stock units upon a participant's termination of employment (subject to the terms of the award agreement).
The plan may provide for a single payment, or it may provide for installment payments over a period of time after the phantom stock vests. In some cases, the employer may let the employee elect to receive the payout in the form of an equivalent amount of stock.
If a business is sold, employees that own phantom stock receive money that is equal to the amount they would have received had they owned actual stock in the company. For that reason, it's financially beneficial to employees to own phantom stock, as they don't need to worry about dilution.
