Document background
The Stock Appreciation Rights Agreement is utilized when companies wish to provide employees with equity-linked incentives without diluting actual shareholding. This document is particularly relevant in the Netherlands, where it must comply with specific local corporate, employment, and tax regulations. The agreement typically forms part of a company's long-term incentive program and is used to align employee interests with company performance while managing cash flow and avoiding share dilution. It details the grant terms, vesting schedule, exercise procedures, and payment calculations, while incorporating Dutch-specific requirements such as works council approval where necessary and local tax considerations. The document is especially useful for private companies where share valuation is complex, or for international organizations seeking to provide consistent incentives across multiple jurisdictions while maintaining local compliance.
