Puerto Rico 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

Puerto Rico Share Appreciation Rights Plan (SHARP) with Amendment: A Comprehensive Overview Puerto Rico Share Appreciation Rights Plan (SHARP) with amendment is a compensation strategy adopted by companies operating in Puerto Rico. It is designed to reward employees by granting them the opportunity to benefit from the appreciation in the value of the company's shares over a specified period. This employee stock plan is a key component of Puerto Rico's efforts to attract and retain top talent within its workforce. The SHARP with amendment provides employees with the right to receive cash or company shares equivalent to the increase in the market value of the company's shares. Companies can choose from various types of Puerto Rico Share Appreciation Rights Plans with amendments, each offering distinct features tailored to meet their specific needs. Some notable types include: 1. Performance-Based SHARP: This variant of the plan rewards employees based on predefined performance goals or metrics. Employees become eligible for appreciation rights when they achieve these targets, aligning their performance closely with the company's overall success. 2. Time-Vesting SHARP: In this type of SHARP, employees gain appreciation rights gradually over a specific period. This encourages employee retention as the vested rights can only be exercised after completion of the vesting period, typically spanning several years. 3. Change-in-Control SHARP: This plan is triggered when a change in control occurs within the company, such as a merger or acquisition. Employees are granted appreciation rights to compensate for any potential negative impact resulting from such changes. 4. Cash-Based SHARP: While most SARS provide company shares as a form of reward, cash-based SARS grant employees the right to receive cash equivalents, making it a flexible option for companies with diverse compensation preferences. The amendment to the Puerto Rico Share Appreciation Rights Plan typically involves modifications to the plan provisions to adapt to changing market conditions, regulatory requirements, or company needs. These amendments may include adjustments to the performance criteria, vesting periods, or changes in the method used to calculate appreciation rights. As companies adopt Puerto Rico SHARP with amendments, they often endeavor to strike a balance between maximizing employee incentives and aligning them with the company's financial interests. This results in improved employee productivity, loyalty, and retention, as well as an overall enhancement of the company's performance. In conclusion, the Puerto Rico Share Appreciation Rights Plan with amendment is a dynamic compensation tool that enables companies to reward and motivate their employees effectively. With various types of SARS available, companies have the flexibility to implement plans that suit their unique organizational requirements. By leveraging the SHARP with amendment, Puerto Rico-based companies can attract and retain top talent, fostering a highly motivated and dedicated workforce.