Stock Appreciation Rights

Stock Appreciation Rights

An incentive scheme for employees similar to stock options. The employee get the increase in the stock price from the date of the grant to the date of the exercise. However, in contrast to options, there is no dillutive effect. That is, no shares are issued. Similar to options, if the company's stock falls in value, the appreciation right is worthless.

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Stock Appreciation Right

A bonus that an employer pays an employee equal to the price appreciation on the company's stock over a given period of time. This is much like an employee stock option. The primary difference is that the employee does not have to actually buy stock; that is, he/she does not have to pay anything. Rather, the employee simply receives the cash or stock bonus in the specified amount.