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Stock appreciation rights (SARs) are a type of employee compensation linked to the company's stock price during a preset period. Unlike stock options, SARs are often paid in cash and do not require the employee to own any asset or contract.
Hear this out loud PauseAn option award, or sometimes called a stock option award, is a legal agreement between a company and an employee that gives the employee stock options in the company as a form of compensation or bonus.
Hear this out loud PauseRestricted stock awards represent actual ownership of stock and come with conditions on the timing of their sale. An employee benefits from stock options when they buy the stock at the exercise price and then sell it at a higher price.
Restricted stock awards (RSAs) and restricted stock units (RSUs) are two alternatives to stock options (such as ISOs and NSOs) that companies can use to compensate their employees. While stock options offer employees the ?option? to buy shares at a fixed price, RSAs and RSUs are grants of stock.
Stock awards provide corporations a way to pay their executives based on company performance so their compensation aligns with the expectations of the shareholders. Companies may also grant stock awards to lower-level employees to incentivize them to take ownership of the company's performance and retain their loyalty.