Stock Appreciation Rights
/ˈstɒk ˌæprɪʃiˈeɪʃən raɪts/
Definitions
- (n.) A contractual right granted to employees or stakeholders to receive a payment equal to the appreciation in the value of a company’s stock over a specified period, without requiring the grant holder to purchase stock.
The executive exercised his stock appreciation rights and received a cash bonus equal to the increase in stock value.
Forms
- stock appreciation rights
- stock appreciation right
Related terms
See also
Commentary
Stock appreciation rights are often used in executive compensation to provide incentives tied to company performance without diluting equity.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.