Western Union 2014 Annual Report Download - page 101

83 | The Western Union Company – Proxy Statement
Proposal 3 PROXY STATEMENT
NOTICE OF 2015 ANNUAL MEETING OF STOCKHOLDERS AND PROXY STATEMENT
amount realized upon that disposition, and (2) the excess
of the fair market value of those shares on the date of
exercise over the purchase price, and the Company will be
entitled to a corresponding deduction.
SARs
A participant will not recognize taxable income at the time
SARs are granted and the Company will not be entitled to
a tax deduction at that time. Upon exercise, the participant
will recognize compensation taxable as ordinary income
(and subject to income tax withholding in respect of an
employee) in an amount equal to the fair market value of
any shares delivered and the amount of cash paid by the
Company. This amount is deductible by the Company as
compensation expense.
Stock Awards
A participant will not recognize taxable income at the
time restricted stock is granted and the Company will not
be entitled to a tax deduction at that time, unless the
participant makes an election to be taxed at that time.
If such election is made, the participant will recognize
compensation taxable as ordinary income (and subject
to income tax withholding in respect of an employee) at
the time of the grant in an amount equal to the excess
of the fair market value for the shares at such time over
the amount, if any, paid for those shares. If such election
is not made, the participant will recognize compensation
taxable as ordinary income (and subject to income tax
withholding in respect of an employee) at the time the
restrictions constituting a substantial risk of forfeiture
lapse in an amount equal to the excess of the fair market
value of the shares at such time over the amount, if any,
paid for those shares. The amount of ordinary income
recognized by making the above-described election
or upon the lapse of restrictions is deductible by the
Company as compensation expense, except to the extent
the deduction limits of Section 162(m) of the Code apply.
In addition, a participant receiving dividends with respect
to restricted stock for which the above-described election
has not been made and prior to the time the restrictions
lapse will recognize compensation taxable as ordinary
income (and subject to income tax withholding in respect
of an employee), rather than dividend income, in an
amount equal to the dividends paid and the Company
will be entitled to a corresponding deduction, except to
the extent the deduction limits of Section 162(m) of the
Code apply.
A participant will not recognize taxable income at the
time a restricted stock unit is granted and the Company
will not be entitled to a tax deduction at that time. Upon
settlement of restricted stock units, the participant will
recognize compensation taxable as ordinary income
(and subject to income tax withholding in respect of an
employee) in an amount equal to the fair market value of
any shares delivered and the amount of any cash paid by
the Company. The amount of ordinary income recognized
is deductible by the Company as compensation expense,
except to the extent the deduction limits of Section 162(m)
of the Code apply.
A participant will generally recognize compensation
taxable as ordinary income (and subject to income tax
withholding in respect of an employee) at the time
bonus stock is granted. The Company is entitled to a
corresponding deduction at the time ordinary income is
recognized by the participant, except to the extent the
deduction limits of Section 162(m) of the Code apply.
A participant will not recognize taxable income at the time
a bonus stock unit or deferred stock unit is granted and
the Company will not be entitled to a tax deduction at that
time. Upon settlement of bonus stock units or deferred
stock units, the participant will recognize compensation
taxable as ordinary income (and subject to income tax
withholding in respect of an employee) in an amount
equal to the fair market value of any shares delivered and,
in the case of deferred stock units, the amount of any cash
paid by the Company. The amount of ordinary income
recognized is deductible by the Company as compensation
expense, except to the extent the deduction limits of
Section 162(m) of the Code apply.