Stock appreciation rights (SARs):
A) Give an individual the right to purchase a certain number of shares at a specified price over a specified time period
B) Confer bonuses to employees based on increases in stock prices for a predetermined number of shares
C) Should never be used as employee incentives because they are too narrowly focused on the company's stock price
D) Are considered to be a current reward of employee performance

Question

Quizplus · Accepted Answer

Stock appreciation rights (SARs) are designed to provide employees with a bonus that is equivalent to the appreciation (increase in value) of a set number of shares over a specified period. They allow employees to benefit from the increase in stock price without requiring them to purchase or own the actual stock.

Stock Appreciation Rights (SARs)