Stock appreciation rights agreements or SAR plans are documents signed between an employee and a company by which the employee can be encouraged to take active interest in the company’s performance and motivate him to work better, as a major part of the employee’s compensation is related to the accomplishments of the firm. SAR agreements are created in such a way that the increase in the employee’s personal wealth is connected to the company’s growth. The employee thus gets a chance to earn money from the higher price of the firm’s stocks.
For eg, if the employee is granted SARs for 500 shares worth $10 and the price of the shares go up to $15 in the future, the employee will earn $5 per share. Once the share price of the company rises, the employee can be compensated either through shares or cash. SARs help the company to keep records in a more convenient way and makes accounting simple.
You can Download the Stock Appreciation Rights Agreement, customize it according to your needs and Print. Stock Appreciation Rights Agreement Template is either in MS Word, Excel or in PDF.
Sample Stock Appreciation Rights Agreement
Stock Appreciation Rights Agreement