What are SARs?

Stock appreciation rights (SARs) are a type of financial instrument linked to the company’s stock price during a predetermined period. It gives the holder the right to acquire shares of our Company’s common stock in the future.

SARs are profitable when the company’s stock price rises above the “base price.” The higher the price of our common stock in the future, the more shares of our stock that the SAR holder will have the right to acquire when the SAR is exercised.