For a stock appreciation rights (SAR)compensation plan, the measurement date is the date
A)on which the options (SARs)are granted to the employees
B)when the employees may first exercise the options (SARs)
C)on which the options (SARs)are exercised
D)of the adoption of the plan

Question

Quizplus · Accepted Answer

The measurement date for a stock appreciation rights (SAR) compensation plan is the date on which the options (SARs) are exercised. This is because the SARs give the employee the right to receive the appreciation in the value of the company's stock from the grant date to the exercise date. Therefore, the measurement date is when the gain is realized by the employee.

For a Stock Appreciation Rights (SAR)compensation Plan, the Measurement Date