Stock Appreciation Rights (SARs)

Multiple Choice

Stock appreciation rights (SARs) :

A) Give an individual the right to purchase a certain number of shares at a specified price over a specified time period
B) Confer bonuses to employees based on increases in stock prices for a predetermined number of shares
C) Should never be used as employee incentives because they are too narrowly focused on the company's stock price
D) Are considered to be a current reward of employee performance