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ESPS (Employee Stock Purchase Scheme):- An employee benefit, that some firms offer allowing employees to use payroll deductions to buy shares in the firm at a discount from their fair market value.
Restricted Stocks (RSUs): - Restricted stock, also known as letter stock or restricted securities, refers to stock of a company that is not fully transferable until certain conditions have been met. Upon satisfaction of those conditions, the stock becomes transferable by the person holding the award.
Stock Appreciation Rights: - Stock appreciation rights (SARs) are a method for companies to give their management or employees a bonus if the company performs well financially.
Performance Shares: - Performance Shares is the method of appreciation for the performance. The goal of performance shares is to tie managers to the interests of shareholders. Their goal is similar to employee stock-option plans, as they provide an explicit incentive for management to focus their efforts on maximizing shareholder value.
Phantom Stock: - Phantom stock is a method for companies to give their management or employees a bonus if the company performs well financially. Phantom stock provides a cash or stock bonus based on the value of a stated number of shares, to be paid out at the end of a specified period of time. Phantom stock is essentially a cash bonus plan, although some plans pay out the benefits in the form of shares. Phantom stock is favored by closely held or family-owned companies who want to incentivize management and other employees without granting them equity.
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