If I leave the company will I be able to keep my stock in the company?
Full Question:
Answer:
A stock appreciation right (SAR) , is a right to receive a bonus equal to the appreciation in the company's stock over a specified period. SARs benefit the employee with an increase in stock price. The difference from a stock option is that the employee is not required to pay the
exercise price (as with an employee stock option), but rather just receives the amount of the increase in cash or stock. This is normally paid out in cash, but it could be paid in shares. SARs often can be exercised any time after they vest. SARs are often granted in tandem with stock options to help finance the purchase of the options and/or pay tax if any is due upon exercise of the options; these SARs sometimes are called "tandem SARs."
Such bonus plans can be designed in many ways, dealing with issues such as who gets how much, vesting rules, liquidity concerns, restrictions on selling shares (when awards are settled in shares), eligibility, rights to interim distributions of earnings, and rights to participate in corporate governance (if any).
There are special rules in the event that you leave your employer, although generally the expiration is accelerated. The answer will depend on the plan's terms regarding the vesting and expiration of SARS rights. Typically the plan will specify when the SARS rights vest, meaning that
the employee becomes entitled to receive it, and if and for how long any vested or partially vested rights may be exercised upon termination of employment. See your employer's plan rules for details.