что такое stock appreciation rights

STOCK APPRECIATION RIGHTS

Смотреть что такое «STOCK APPRECIATION RIGHTS» в других словарях:

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 dilutive effect. That is, no shares… … Financial and business terms

Stock Appreciation Rights — Phantom Stoks; fiktive ⇡ Aktienoptionen für die Vergütung von Mitarbeitern und Führugskräften, welche kein Recht auf einen Aktienbezug beinhalten. Im Gegensatz zu realen ⇡ Aktionoptionsplänen stellen sie erfolgsabhängige Tantiemen dar. Es wird… … Lexikon der Economics

stock — The goods and wares of a merchant or tradesman, kept for sale and traffic. In a larger sense, the capital of a merchant or other person, including his merchandise, money, and credits, or, in other words, the entire property employed in business.… … Black’s law dictionary

Preferred Stock — A class of ownership in a corporation that has a higher claim on the assets and earnings than common stock. Preferred stock generally has a dividend that must be paid out before dividends to common stockholders and the shares usually do not have… … Investment dictionary

Common stock — Financial markets Public market Exchange Securities Bond market Fixed income Corporate bond Government bond Municipal bond … Wikipedia

common Stock — A share of ownership in a corporation. The owners of common stock normally enjoy voting rights and, ideally, are rewarded for their investment by both *dividends and *appreciation in the market value of the common stock. Common stock is… … Auditor’s dictionary

Zero-Dividend Preferred Stock — A preferred share that is not required to pay a dividend to its holder. The owner of a zero dividend preferred share will earn income from capital appreciation and may receive a one time payment at the end of the investment term. Also referred to … Investment dictionary

ПРАВА НА ПОЛУЧЕНИЕ РАЗНИЦЫ ПО КУРСОВОЙ СТОИМОСТИ АКЦИЙ — STOCK APPRECIATION RIGHTSФорма стимулирования служащих корпорации. Используется как разновидность опционов с акциями. Документ, дающий право его держателю получить разницу между курсом, указанным в опционе, и рыночным курсом акции. Прирост… … Энциклопедия банковского дела и финансов

Aktienoptionsplan — Stock Options Program, kapitalmarktorientierte, leistungsgerechte Vergütung von Führungskräften und Mitarbeitern, als Anreiz für eine langfristige und nachhaltige Wertschaffung und Shareholder Value Orientierung des Managements. Über ⇡… … Lexikon der Economics

ОПЦИОНЫ С АКЦИЯМИ — STOCK OPTIONSПраво покупки обычных акций в соответствии с условиями соглашения, предоставляемое при уплате определенной суммы денег. Программы предоставления опционов на акции представляют собой специальные программы, согласно к рым служащим… … Энциклопедия банковского дела и финансов

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stock appreciation right

Смотреть что такое «stock appreciation right» в других словарях:

stock appreciation right — n: a form of deferred compensation that allows an employee to receive as a bonus the cash value of the appreciation of stock over a period of years and that defers taxation until paid Merriam Webster’s Dictionary of Law. Merriam Webster. 1996 … Law dictionary

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. Bloomberg Financial… … Financial and business terms

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 dilutive effect. That is, no shares… … Financial and business terms

Stock selection criteria — is a strategy in which an analyst or investor uses a systematic form of analysis to determine if a particular stock constitutes a good investment which should be added to their portfolio. The objective of stock selection criteria is maximizing… … Wikipedia

stock — The goods and wares of a merchant or tradesman, kept for sale and traffic. In a larger sense, the capital of a merchant or other person, including his merchandise, money, and credits, or, in other words, the entire property employed in business.… … Black’s law dictionary

Stock market bottom — A stock market bottom is a trend reversal that marks the end of a market downturn and the beginning of an upward moving trend. A bottom may occur because of the presence of a cycle, or because of panic selling as a reaction to an adverse… … Wikipedia

Common stock — These are securities that represent equity ownership in a company. Common shares let an investor vote on such matters as the election of directors. They also give the holder a share in a company s profits via dividend payments or the capital… … Financial and business terms

common stock — A type of equity or capital representing shares of ownership in a corporation. May or may not receive distributions of corporate income in the form of dividends. Receives the lowest priority for repayment in the event of a corporate liquidation.… … Financial and business terms

Kirby: Right Back at Ya! — Kirby of the Stars redirects here. For the video game series from which the anime spun off, see Kirby (series). Kirby: Right Back At Ya/ Kirby of the Stars The main cast of Kirby: Right Back At Ya! … Wikipedia

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stock-appreciation rights

Смотреть что такое «stock-appreciation rights» в других словарях:

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 dilutive effect. That is, no shares… … Financial and business terms

Stock Appreciation Rights — Phantom Stoks; fiktive ⇡ Aktienoptionen für die Vergütung von Mitarbeitern und Führugskräften, welche kein Recht auf einen Aktienbezug beinhalten. Im Gegensatz zu realen ⇡ Aktionoptionsplänen stellen sie erfolgsabhängige Tantiemen dar. Es wird… … Lexikon der Economics

stock — The goods and wares of a merchant or tradesman, kept for sale and traffic. In a larger sense, the capital of a merchant or other person, including his merchandise, money, and credits, or, in other words, the entire property employed in business.… … Black’s law dictionary

Preferred Stock — A class of ownership in a corporation that has a higher claim on the assets and earnings than common stock. Preferred stock generally has a dividend that must be paid out before dividends to common stockholders and the shares usually do not have… … Investment dictionary

Common stock — Financial markets Public market Exchange Securities Bond market Fixed income Corporate bond Government bond Municipal bond … Wikipedia

common Stock — A share of ownership in a corporation. The owners of common stock normally enjoy voting rights and, ideally, are rewarded for their investment by both *dividends and *appreciation in the market value of the common stock. Common stock is… … Auditor’s dictionary

Zero-Dividend Preferred Stock — A preferred share that is not required to pay a dividend to its holder. The owner of a zero dividend preferred share will earn income from capital appreciation and may receive a one time payment at the end of the investment term. Also referred to … Investment dictionary

ПРАВА НА ПОЛУЧЕНИЕ РАЗНИЦЫ ПО КУРСОВОЙ СТОИМОСТИ АКЦИЙ — STOCK APPRECIATION RIGHTSФорма стимулирования служащих корпорации. Используется как разновидность опционов с акциями. Документ, дающий право его держателю получить разницу между курсом, указанным в опционе, и рыночным курсом акции. Прирост… … Энциклопедия банковского дела и финансов

Aktienoptionsplan — Stock Options Program, kapitalmarktorientierte, leistungsgerechte Vergütung von Führungskräften und Mitarbeitern, als Anreiz für eine langfristige und nachhaltige Wertschaffung und Shareholder Value Orientierung des Managements. Über ⇡… … Lexikon der Economics

ОПЦИОНЫ С АКЦИЯМИ — STOCK OPTIONSПраво покупки обычных акций в соответствии с условиями соглашения, предоставляемое при уплате определенной суммы денег. Программы предоставления опционов на акции представляют собой специальные программы, согласно к рым служащим… … Энциклопедия банковского дела и финансов

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stock appreciation right

Смотреть что такое «stock appreciation right» в других словарях:

stock appreciation right — n: a form of deferred compensation that allows an employee to receive as a bonus the cash value of the appreciation of stock over a period of years and that defers taxation until paid Merriam Webster’s Dictionary of Law. Merriam Webster. 1996 … Law dictionary

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. Bloomberg Financial… … Financial and business terms

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 dilutive effect. That is, no shares… … Financial and business terms

Stock selection criteria — is a strategy in which an analyst or investor uses a systematic form of analysis to determine if a particular stock constitutes a good investment which should be added to their portfolio. The objective of stock selection criteria is maximizing… … Wikipedia

stock — The goods and wares of a merchant or tradesman, kept for sale and traffic. In a larger sense, the capital of a merchant or other person, including his merchandise, money, and credits, or, in other words, the entire property employed in business.… … Black’s law dictionary

Stock market bottom — A stock market bottom is a trend reversal that marks the end of a market downturn and the beginning of an upward moving trend. A bottom may occur because of the presence of a cycle, or because of panic selling as a reaction to an adverse… … Wikipedia

Common stock — These are securities that represent equity ownership in a company. Common shares let an investor vote on such matters as the election of directors. They also give the holder a share in a company s profits via dividend payments or the capital… … Financial and business terms

common stock — A type of equity or capital representing shares of ownership in a corporation. May or may not receive distributions of corporate income in the form of dividends. Receives the lowest priority for repayment in the event of a corporate liquidation.… … Financial and business terms

Kirby: Right Back at Ya! — Kirby of the Stars redirects here. For the video game series from which the anime spun off, see Kirby (series). Kirby: Right Back At Ya/ Kirby of the Stars The main cast of Kirby: Right Back At Ya! … Wikipedia

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Stock Appreciation Rights (SARs)

What Are Stock Appreciation Rights?

Stock appreciation rights (SARs) are a type of employee compensation linked to the company’s stock price during a predetermined period. SARs are profitable for employees when the company’s stock price rises, which makes them similar to employee stock options (ESOs). However, employees do not have to pay the exercise price with SARs. Instead, they receive the sum of the increase in stock or cash.

The primary benefit of stock appreciation rights is that employees can receive proceeds from stock price increases without having to buy stock.

Key Takeaways

Understanding Stock Appreciation Rights

Stock appreciation rights offer the right to the cash equivalent of a stock’s price gains over a predetermined time interval. Employers almost always pay this type of bonus in cash. However, the company may pay the employee bonus in shares. In most cases, employees can exercise SARs after they vest. When SARs vest, it simply means that they become available to exercise. Employers generally issue SARs along with stock options. These stock appreciation rights are called tandem SARs. They assist in funding the purchase of options and help pay off taxes due at the time the SARs are exercised.

Like several other forms of stock compensation, SARs are transferable and are often subject to clawback provisions. Clawback provisions specify conditions under which the company may take back some or all of the income received by employees under the plan. For example, they might allow the firm to withdraw SARs if an employee goes to work for a competitor before a specified date. SARs are also frequently awarded according to a vesting schedule that ties them to performance goals set by the company.

SARs are taxed the same way as non-qualified stock options (NSOs). There are no tax consequences of any kind on either the grant date or when they are vested. However, participants must recognize ordinary income on the spread at the time of exercise.   Most employers will also withhold supplemental federal income tax.   Furthermore, they will hold back funds to pay state and local taxes where applicable.

Many employers will also withhold taxes on SARs in the form of shares. For example, an employer may only give a certain number of shares and withhold the remainder to cover the tax. As with NSOs, the amount of income recognized upon exercise becomes the cost basis for taxes when holders sell the shares. 

Special Considerations

SARs are similar in some ways to phantom stock. The major difference is that phantom stocks are typically reflective of stock splits and dividends. Phantom stock is a promise that an employee will receive either the value of the company’s shares or the amount that the stock price increases during a specified period. The phantom stock bonus an employee receives is taxed as ordinary income at the time it is received. Phantom stock is not tax-qualified, so it does not have to follow the rules that employee stock ownership plans (ESOPs) and 401(k)s must follow. 

Advantages and Disadvantages of SARs

The greatest advantage of SARs is flexibility. Companies can structure SARs in a variety of ways that work best for different individuals. However, this flexibility requires making numerous choices. Companies offering SARs must decide which employees receive them, the value of these bonuses, the liquidity of the SARs, and which vesting rules to adopt.

Employers like SARs because the accounting rules for them are more favorable than in the past. They receive fixed instead of variable accounting treatment, much like conventional stock option plans. However, SARs require the issuance of fewer shares and dilute the share price less than traditional stock plans. Like all other forms of equity compensation, SARs can also serve to motivate and retain employees.

Despite their many benefits, SARs are a high-risk form of employee compensation. If the company’s stock does not appreciate, SARs often expire worthless.

Example of Stock Appreciation Rights

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