Bruce Brumberg
Stock appreciation rights (SARs) are being granted by some companies. To help you understand SARs, Part 1 explains the "appreciation," the role of exercises, and taxes at exercise.
Return to top of this page
SARs, or stock appreciation rights, are contractual rights that entitle you to receive the appreciation from a corresponding number of company shares after the grant date. Instead of exercising a stock option, you...
Much of the stock option content is relevant to SARs. All the key stock option features...
A summary of data in surveys from major consulting and research firms shows that...
FAS 123(R), now called ASC Topic 718, requires the expensing of stock options. This makes accounting for stock options and stock-settled SARs similar, leading some companies...
The personal economic benefits of SARs are...
Stock appreciation rights entitle you to stock (or sometimes cash) that equals the amount...
Unlike with stock options, you have no exercise cost to obtain the appreciation spread above...
Most stock plans automatically adjust your SARs for the stock split. Your number of SARs will be adjusted...
As with stock options, you should know the following, all of which will be available in your...
No. Until you exercise a stock option, you do not have the rights of a...
For senior executives, stock-settled SARs avoid the concerns about cashless exercises by officers and directors raised by...
First a court must decide (under the relevant state's laws) whether the property subject to division includes...
These plans tend to be used more in privately held companies than at publicly traded companies. Phantom stock is similar to stock appreciation rights in that you receive...
Return to top of page
Test your knowledge with our Stock Appreciation Rights quiz.
Tax errors can be costly! Don't draw unwanted attention from the IRS. Our Tax Center explains and illustrates the tax rules for sales of company stock, W-2s, withholding, estimated taxes, AMT, and more.
