The closing stock price (September 30th) marks the end of the 2014 SSP Award Year. Per the terms of MOA A6: Success Sharing Plan, found on page 109 of the Agreement between the Company and the CWA District 4, this year’s Award was based on the Stock Appreciation Value plus the Dividend Rate Value. The Beginning Award Value of the October 1, 2013 closing AT&T stock price was $34.06 and the Ending Award Value of the September 30, 2014 AT&T closing stock price was $35.24. As a result, the Stock Appreciation Value component of the SSP for this Award Year will pay out. Additionally, the Award also includes a Dividend Rate Value component for dividends declared during the Award Year, the last of which was just declared on Friday (Sep 26th). All dividends declared in this Award Year were for $0.46 per share.
The total payout for the 2014 SSP Award Year is $453.00 per eligible* employee (150 success units x (($35.24 – $34.06 = $1.18 Stock Appreciation) + (0.46 declared dividend quarterly x 4 = $1.84))).
*An eligible employee is only eligible for the SSP HRA Award if she/he is a regular, temporary or term employee who (A) is on the payroll on both the beginning and ending dates of the Award Year, (B) works for a minimum of three (3) months within the Award Year in a position covered by the CWA District 4/AT&T Midwest Collective Bargaining Agreement, and (C) is enrolled in a Company-sponsored medical plan on the HRA crediting date for that year. Employees who meet the conditions in (A) and (B) but not (C) will be paid a lump-sum in cash.