What does SAR mean?

In finance, SAR stands for Stock Appreciation Rights. SARs are a type of employee compensation linked to the performance of a company's stock. SARs give employees the right to receive a payment equal to the appreciation in the company's stock over a specified period of time. They are often used as an incentive for employees to help increase the company's stock price and performance. SARs are a form of equity compensation and are often used as part of executive compensation packages. They can be an effective way to align the interests of employees with the interests of shareholders, as they tie the employees' compensation directly to the company's stock price. SARs can also be used as a retention tool to encourage employees to stay with the company for a certain period of time. They are a popular form of equity compensation, particularly in publicly traded companies.