User:Cvandam

ESOARS

ESOARS (Employee Stock Option Appreciation Rights Securities) provide a market-based alternative to employee stock option valuation for FAS 123R. ESOARS are tracking instruments that measure the cost of the underlying option grant by making payments to holders when employees exercise their options. A fair market value of ESOARS, and consequently the option grant, is determined in a competitive online auction.

ESOARS are tracking securities. They track the value of an employee stock option grant by making payments to holders when employees exercise options in the reference pool of granted options. It is important to note that ESOARS are not stock options. ESOARS holders do not have a right to exercise any options but rather receive payment when employees exercise.