Stock Appreciation Right


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.