How do Stock Appreciation Rights (SARs) work?

Stock Appreciation Rights (SARs) work much like a stock option, as far as delivering value. They offer upsides and downsides. Essentially you are given a right to any appreciation in company stock above the value on the date it was granted to you. read more

A SAR gives the participant the right to receive a cash or equivalent stock share amount equal to the appreciation on a specified number of shares of company stock over a specified time. A stock-settled SAR (SSAR) pays out the appreciation in the form of stock. read more

A stock appreciation right (SAR) is a bonus given to employees that is equal to the appreciation of company stock over an established time period. Similar to employee stock options (ESO), SARs are beneficial to the employee when company stock prices rise; the difference with SARs is that employees do not have to pay the exercise price, but receive the sum of the increase in stock or cash. read more