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.

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.
References in periodicals archive ?
It had cancelled the Employee Stock Appreciation Rights (ESAR) scheme and the rights granted under the plan with effect from March 20.
ESOP Plus[R] - www.esopplus.com - is a national boutique law firm that guides it clients through succession and exit planning strategies using employee stock ownership plans (ESOPS), phantom stock plans, stock options, stock appreciation rights and other techniques for encouraging employee ownership.
Finally, they point to a variety of stock rights, including stock options, restricted stock, stock appreciation rights, phantom stock and employee stock purchase plans.
Under the plan, Piper Jaffray may issue awards to new employees in the form of stock options, stock appreciation rights, restricted stock, restricted stock units, dividend equivalents or similar awards.
The amendment to the Articles of Association proposed by the Board of Directors regarding Stock-settled Stock Appreciation Rights (S-SARs) and Restricted Stock Units (RSUs) was also approved with 99.60% of the votes represented.
Before you embark on a sale process, familiarize yourself with some of the more common strategies that buyers use, including deferred stock and stock appreciation rights, setting aside a cash bonus pool, entering into employment agreements with key executives, and giving certain executives the right to purchase additional shares of the company.
Heartland Financial USA announced the completion of its purchase of Lubbock, Texas-based First Bank Lubbock Bancshares and its wholly owned subsidiary, FirstBank & Trust, at the close of business on May 18.Based on Heartland's closing stock price of $55.05 per share as of May 18, 2018, the aggregate transaction value at closing was approximately $203.2M in shares of Heartland common stock and cash (including the cash consideration to be paid to holders of FBLB's stock appreciation rights but excluding Heartland's repayment and assumption of FBLB's.
The transaction value is based on Heartland's closing common stock price of USD 50.15 per share on December 11, 2017, the stock and cash transaction includes the cash consideration to be paid to holders of FBLB's stock appreciation rights.
Based on Heartland's closing common stock price of $50.15 per share on December 11, 2017, the stock and cash transaction is valued at approximately $185.6 million (including the cash consideration to be paid to holders of FBLB's stock appreciation rights).
"Globally, while stock options/RSUs (restricted stock units) and SARs (stock appreciation rights) are issued at higher management levels, employees at large participate in stock purchase plans, which are not yet popular in India," says Ghate.
1.162-27(e)(2)(vi)(A), in response to comments to the proposed regulations, clarifies that a plan satisfies the per-employee limitation requirement if the plan specifies an aggregate maximum number of shares with respect to which stock options, stock appreciation rights, restricted stock, restricted stock units (RSUs), and other equity-based awards can be granted to any individual employee during a specified period under a plan the shareholders approved, as required by Regs.
"It's not just dollars and cents, it's around all the things that come along with being a shareholder, like voicing your thoughts as a board member and having that creative control,'' Schlogel said, who added that there's a stock appreciation rights program for artists.