SARs

What are SARs (Stock Appreciation Rights)?

Stock Appreciation Rights (SARs) are a type of employee incentive that allows individuals to benefit from the increase in a company's stock price over a set period—without having to purchase the stock. SARs are typically settled in cash or company stock, making them a flexible reward mechanism.

💰 SARs: Allow employees to receive the financial equivalent of the appreciation in stock price, typically in cash or company stock, without having to purchase the stock.

Incentivize employees

These instruments are used to attract, retain, and motivate employees by providing them with the potential for financial gain linked to company performance.

Set a vesting schedule

Establish when SARs will vest (i.e., when employees can exercise them).

Cash or stock flexibility

Companies can choose to settle SARs in cash or stock, depending on their financial strategy.

Set a vesting schedule

Establish when SARs will vest (i.e., when employees can exercise them).

Establish vesting schedules

Determine when and how the options or SARs will vest (i.e., the employee earns the right to exercise them).

Decide settlement type

Choose whether SARs will be paid out in cash, stock, or a mix of both.

STAK

Protect ownership and ensure governance flexibility with a STAK. Ideal for securing funding and managing shareholder interests. A strategic choice for streamlined equity management.

Bonds

Reliable financing that offers steady returns for investors while preserving company equity. Perfect for stable businesses seeking operational or growth capital. A classic tool for building financial stability.

Options

Empower employees with the right to buy company shares at a set price, driving retention and growth.

SARs (Stock Appreciation Rights)

What are SARs (Stock Appreciation Rights)?

What are the Benefits of SARs?

Employee motivation

Tax efficiency

Cash flow management

Why Set Up SARs?

Incentivize employees

Set a vesting schedule

Cash or stock flexibility

How to Set Up SARs?

Set a vesting schedule

Establish vesting schedules

Decide settlement type

Examples of Companies Using SARs

The investment bank has used SARs to compensate executives and key employees.

Microsoft previously used SARs extensively to reward employees without issuing additional shares.

Discover an initial, tailor-made quote on how co-ownership could be structured for your company.

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