Tandem Stock Appreciation Rights Definition

A stock appreciation right sar is a form of bonus compensation given to employees that is equal to the appreciation of company stock over an established time period.

Tandem stock appreciation rights definition. Tandem stock appreciation rights are granted in conjunction with a non qualified stock option or an incentive stock option which entitles the holder to exercise it as an option or as a sar. I the fair market value of a share of common stock as of the date such right is exercised over ii the aggregate exercise price of such right. Similar to employee stock options eso sars are beneficial to the employee when company stock prices rise. A stock appreciation right sar is an award of two type stand alone and tandem sars which provides the holder with the ability to profit from the appreciation in value of a set number of shares of company stock over a set period of time.

Non tandem stock appreciation right means a stock appreciation right entitling a participant to receive an amount in cash or common stock as determined by the committee in its sole discretion equal to the excess of. The idea is that the monetary appreciation of the sars will provide the capital. To the extent that the option is exercised the corresponding tandem component is cancelled and vice versa. The election of one type of exercise prevents it from being exercised as another.

Tandem stock appreciation right means a stock appreciation right granted pursuant to section 8 of this plan that is granted in tandem with an option or any similar right granted under any other plan of the company such that the exercise of one results in the cancellation of the other. Sars can be issued in tandem with stock options whether based off of phantom stock or participating company stock.