Puerto Rico Stock Appreciation Rights Plan of The Todd-AO Corporation

State:
Multi-State
Control #:
US-CC-18-403A
Format:
Word; 
Rich Text
Instant download

Description

18-403A 18-403A . . . Stock Appreciation Rights Plan which provides for granting of (a) SARs to employees, directors and consultants and (b) limited stock appreciation rights to persons who are subject to Section 16 of Exchange Act. Limited rights have same terms and conditions as SARs except that limited rights are automatically exercised on date established, without any action on part of grantee, which is at least six months after grant of limited right. To extent limited right is exercised, related SAR is canceled and vice versa. The purpose of limited right is to provide grantees who are subject to short swing profit recovery provisions of Exchange Act with benefits associated with exercise of SARs even though exercise occurs outside of "window period" prescribed by SEC
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  • Preview Stock Appreciation Rights Plan of The Todd-AO Corporation
  • Preview Stock Appreciation Rights Plan of The Todd-AO Corporation
  • Preview Stock Appreciation Rights Plan of The Todd-AO Corporation
  • Preview Stock Appreciation Rights Plan of The Todd-AO Corporation
  • Preview Stock Appreciation Rights Plan of The Todd-AO Corporation
  • Preview Stock Appreciation Rights Plan of The Todd-AO Corporation

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FAQ

A Stock Appreciation Right (SAR) is an award which provides the holder with the ability to profit from the appreciation in value of a set number of shares of company stock over a set period of time.

A ?Stock Appreciation Right? is the right to receive a payment from the Company in an amount equal to the ?Spread,? which is defined as the excess of the Fair Market Value (as defined in Plan) of one share of common stock, $1.00 par value (the ?Stock?) of the Company at the Exercise Date (as defined below) over a ...

A Stock Appreciation Right (SAR) is an award which provides the holder with the ability to profit from the appreciation in value of a set number of shares of company stock over a set period of time.

A SAR is very similar to a stock option, but with a key difference. When a stock option is exercised, an employee has to pay the grant price and acquire the underlying security. However, when a SAR is exercised, the employee does not have to pay to acquire the underlying security.

Stock Appreciation Right (SAR) entitles an employee, who is a shareholder in a company, to a cash payment proportionate to the appreciation of stock traded on a public exchange market. SAR programs provide companies with the flexibility to structure the compensation scheme in a way that suits their beneficiaries.

However, when a stock appreciation right is exercised, the employee does not have to pay to acquire the underlying security. Instead, the employee receives the appreciation in value of the underlying security, which would equal the current market value less the grant price.

In accounting, the process that the company uses to record SAR agreements is to accrue a liability and recognize expense over the term of service. At the end of the service period, the liability is settled in cash or stock (or both).

Stock Appreciation Rights (SARs) are equity-based employee compensation that allow employees to benefit from the appreciation of their company's stock price. The compensation is equal to the increase in stock price during a particular period for a pre-specified number of shares.

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Puerto Rico Stock Appreciation Rights Plan of The Todd-AO Corporation