- A Stock Appreciation Right is a contractual promise to pay Cash Bonus after vesting of the award, tied to the price of the Company’s equity shares.
- Based on the market value of Company share as on the date of exercise, the ‘Stock Appreciation’ earned by you is calculated by the Company.
- This is the difference between the market value and the aggregate exercise price of the exercised units.
- Stock Appreciation is considered as Bonus, and is taxed similarly.