• Home
        • Events
        • Upcoming Events

  • ESOP Guide

How Are Key Employees’ Interests Aligned?

Stock Appreciation Rights

  • Similar to Non-Qualified Stock Options
    • Cashless Exercise
    • Settled in cash, not stock, when exercised

Additional incentive for key employees

  • Can be based on retention or performance

Portion of equity set aside as SARs

  • “Strike Price” cannot be less than fair market value
  • Post-Transaction Price Per Share