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Dictionary by pitch.dog
Founder & employee equity · Specialist

Stock appreciation right

Also called: SAR

ELI5

A reward based on how much the share value rises.

Used in conversation

“The stock appreciation right settles in cash.”

Definition

A right to receive value equal to an increase in share price over a base amount.

Here “Stock appreciation right” means: A right to receive value equal to an increase in share price over a base amount.

Pitch context

You will see “Stock appreciation right” in fundraising decks, data rooms, term sheets and investor conversations when the discussion reaches founder & employee equity.

Why it matters: In founder & employee equity, a loose definition can change rights, obligations, approval, disclosure or enforceability.

Caution

Meaning, enforceability and required process vary by jurisdiction and agreement; this definition is not legal advice.

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Sources & evidence · 5

Direct term-level sources and supporting source families.