Stock appreciation rights allow an employee to benefit from an increase in the value of the employer's stock without actually purchasing the stock.

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Stock appreciation rights (SARs) are a type of employee compensation linked to the performance of the company's stock. They provide the right to receive a payment, often in cash or shares, equivalent to the increase in the stock price over a set period, without requiring the employee to purchase the stock.

Stock Appreciation Rights Allow an Employee to Benefit from an Increase