Stock Appreciation Right


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Stock Appreciation Right (SAR)

A contractual right, often granted in tandem with an option that allows an individual to receive cash or stock of a value equal to the appreciation of the stock from the grant date to the date the SAR is exercised.

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.

stock appreciation right

Executive compensation that permits an employee to receive cash or stock equal to the amount by which the firm's stock price exceeds a specified base price.
References in periodicals archive ?
The comparison was skewed by stock appreciation rights income of $2.8 million (after-tax) in the fiscal 1999 period, versus an $800,000 charge the prior year.
In one technical advice memorandum (TAM),(19) the IRS addressed this issue in the context of both stock options and stock appreciation rights. The IRS held that such payments "are substantially the same as the payments that were analyzed by the IRS in Rev.
Key drivers for this development are the above-mentioned reasons for higher pro forma operating income and the revaluation of stock appreciation rights, which resulted in a stock compensation benefit of EUR 0.2 million in Q4 2014, after a stock compensation expense of EUR 0.2 million in Q4 2013.
According to the terms of the agreement, the company will acquire all of the outstanding common stock of Intervest in a transaction valued at approximately USD 228.5m, less the amount paid by Intervest to cash out all outstanding stock options, stock appreciation rights and stock warrants, and subject to other potential adjustments.
According to the terms of the agreement, the company will acquire all of the outstanding common stock of Intervest in a transaction worth nearly USD228.5m, less the amount paid by Intervest to cash out all outstanding stock options, stock appreciation rights and stock warrants, and subject to other potential adjustments.
Koppel advises clients on the drafting, operation and administration of tax-qualified retirement plans and welfare benefit plans and the investment of retirement plan assets, the development and implementation of equity-based and executive compensation arrangements, including stock options, restricted stock, stock appreciation rights and partnership “carried interest” programs.
The good news is that, under recent IRS guidance, [section]457A does not apply to (1) partnership profits interests (thus most private equity carried interests should not be subject to [section]457A) and (2) fair value stock options and stock-settled stock appreciation rights that are not covered under [section]409A.
* Liberalizing the definition of the underlying stock for stock options and stock appreciation rights (SARs) that may be permitted without triggering the application of Sec.
Imagine also having to explain that while we account for future cash redemptions of a separately maintained stock appreciation rights (SAILs) plan, we ignore reporting the similar obligation for future redemptions of the put in the option plan.
"Phantom stock," "stock appreciation rights," and "performance units" plans are all essentially cash bonus plans, where the payment is tied to the market price of the employer's stock, corporate results, or a division's or business segment's performance.
At the recently merged Marion Merrell Dow, income in the 1989 quarter was pared by $44 million in charges from stock appreciation rights and, to a lesser extent, restructuring--all associated with the merger.
The 2012 Group Five survey included 822 corporate stock plan sponsors with 2,416 stock plans such as stock options, restricted stock, stock purchase, performance shares and stock appreciation rights. For the second consecutive year, Fidelity received the highest ratings of the survey in numerous categories.