Clear Water Lake

Stock Appreciation Rights

What Are Stock Appreciation Rights?

Stock appreciation rights (SARs) are a type of employee compensation linked to the company's stock price during a preset period. Key leaders helping the company grow realize a benefit when its stock price rises, which makes them similar to employee stock options. 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 buying stock.

A SAR program is a longer-term incentive program designed to motivate and reward key leaders who impact your employee base to go above and beyond their daily routines to drive company growth. While a bonus or profit-sharing rewards short-term, it may not provide the incentive for long-term strategic thinking  and actions that will add value to the company today and in the future.

Stock Appreciation Right Overview & Templates

What are Stock Appreciation Rights
This document provides an overview of the program.

Setting up a Stock Appreciation Rights Program
Step-by-step guide to developing this rewarding incentive program for your organization.   This guide references the all the documents found below that you need to set up your program.

Stock Appreciation Rights Sample Agreement Template

This the agreement for the SAR award between the company and the employee.  It is legally binding. Please review carefully with your attorney to ensure the program is a fit for your organization.  

Stock Appreciation Rights Sample Program Abstract

The abstract designed to provide a snapshot of the total financial value of the program. It’s an important tool to track and maintain the program on-going. The abstract should be updated annually and acts as a handy reference should a key employee leave, or at the time of sale, or another company event occurs.  The abstract attached is one example. Your finance team can develop a tracking abstract that fits your company.

Stock Appreciation Rights Presentation Slides Template
Sharing the rewards with key leaders and employees is so important and rewarding.  These slides have been designed to help you prepare a presentation that thanks your group of key leaders and employees for their efforts and investments in helping the company grow.

Stock Appreciation Rights Sample Certificate (Editable)
You can drop in your logo, the recipient’s name, number of awarded units and some company information to create a frame-worthy certificate.  What a great visual representation of company "ownership" and the employee's value to the organization.