The question revolves around financial instruments for employee compensation, specifically Stock Appreciation Rights (SARs), which allow employees to profit from stock price increases in cash or stock. SARs distinguish themselves from traditional stock options by providing flexibility in payout. Therefore, the correct answer is A. Stock appreciation rights.
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The question pertains to financial instruments used in employee compensation, specifically referring to Stock Appreciation Rights (SARs) which allow recipients to profit from stock price increases. SARs can be exercised for cash, stock, or a combination, distinguishing them from other stock options. Understanding various stock options helps employees maximize their financial benefits. ;