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Stock Appreciation Right - SAR
What does it mean?
A right, granted to an employee, to receive a bonus equal to the appreciation in the value of the company's stock for a predetermined number of shares over a specified period.
In Other Words...
For example, an employee may be given 100 SARs. Good fortune shines and the stock increases $50 per share over three years. Consequently, the employee would get 100 SARs x $50 = $5,000.
Related Links
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Related Terms
Employee Stock Option | Employee Stock Ownership Plan | Incentive Stock Option | Nonqualified Stock Option
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