SARs - aqasesuyohaw.web.fc2.com

A SAR gives the participant the right to receive a cash or equivalent stock share amount equal to the appreciation on a specified number of shares of company stock over a specified time. A stock-settled SAR SSAR pays out the appreciation in the form of stock. The participant then has the option of keeping the stock or immediately selling the stock for cash. A cash-settled SAR CSAR pays out the appreciation in the form of cash.

When a SAR vests, it becomes available to exercise.

SSARs are similar to stock options. They are granted at a set price, and they have a vesting period and an expiration date.

Once a SSAR vests, it can be exercised at any time prior to its expiration. Taxes are due at the time of exercise. The remaining net shares are yours to hold or sell. You may exercise your SSARs on StockPlan Connect, the Morgan Stanley website for stock plan participants. StockPlan Connect allows you to track and exercise your SSARs, and request proceeds. Note that if you do not exercise your SSARs before the expiration date, they will expire with no value.

Exercise to Receive Cash Proceeds The goal of this type of exercise is to acquire cash, rather than shares of stock. The exercise is done in two parts: First, you acquire the shares. Next, shares are withheld or sold to cover your taxes and applicable fees which results in your net share amount. Finally, the net shares are sold on the open market and you receive cash proceeds for the sale. This exercise can be placed as a market order. With a Net Exercise, the FMV at exercise determines the number of shares that must be sold or withheld to cover your tax obligation and applicable fees.

The net share balance will be deposited into your Morgan Stanley retail brokerage account. You have the option to sell these shares for cash proceeds at a later date. Deposit into a Morgan Stanley account If you are a current Morgan Stanley brokerage client, we will deposit cash or shares directly into your brokerage account on the settlement date this can take up to 24 hours to appear in the account.

Check via regular mail Morgan Stanley will mail a check containing your sales proceeds. You will receive your proceeds within 8—10 business days from the trade date. Check via overnight delivery For a fee, Morgan Stanley can send your proceeds via overnight delivery.

Wire transfer For a fee, Morgan Stanley can wire your proceeds to your bank three business days following the trade date. Wire transfers are in US dollars. Foreign currency wire For a fee, Morgan Stanley can wire your proceeds to your bank in your local currency.

You will receive the proceeds 4—5 business days after the trade date. Foreign currency check For a fee, Morgan Stanley can send you a proceeds check in your local currency. You will receive the proceeds 10—15 business days after settlement. CSARs function similarly to SSARs.

Once a CSAR vests, it can be exercised at any time prior to its expiration.

You may exercise and track your CSARs on StockPlan Connect. Upon exercising your CSARs, on StockPlan Connect will notify your employer of the transaction details so payout can be coordinated through payroll of your company-specific process.

Stock Options, Restricted Stock, Phantom Stock, Stock Appreciation Rights (SARs), and Employee Stock Purchase Plans (ESPPs)

Note that if you do not exercise your CSARs before the expiration date, they will expire with no value. CSARs are paid out to you by your company via their payroll system or your company-specific process. Please consult with your plan administrator for specific information regarding your payout. When you exercise a SAR, the spread between your exercise price and the FMV is your gain, which is ordinary income.

The gain is taxed at ordinary income rates. In addition, FICA and Medicare are withheld. The ordinary income amount is included on your year-end W-2 from your company.

Stock Appreciation Right (SAR)

If you exercise a SSAR and hold the shares, you will need to report any short or long term gain or loss resulting from subsequently selling these shares. Understanding Your Stock Plan Awards. Information on this website is general in nature.

It is not intended to cover the specific terms of your company's equity plan s. Getting Started with Your Stock Plan account Morgan Stanley Global Stock Plan Services. About Us StockPlan Connect Contact Us Favorites.

Getting Started with Your Stock Plan account Managing Your Equity Awards Managing Your Wealth. Understanding Stock Appreciation Rights Understanding Stock Appreciation Rights. Stock Appreciation Rights Questions WHAT IS A SAR? WHAT DOES IT MEAN WHEN A SAR VESTS?

HOW DO STOCK-SETTLED SARS WORK? HOW DO I EXERCISE A STOCK-SETTLED SAR? WHAT EXERCISE METHODS ARE AVAILABLE FOR SSARS? HOW AND WHEN CAN I RECEIVE MY SALES PROCEEDS FOR MY STOCK-SETTLED SARS EXERCISES? Morgan Stanley offers several choices for proceeds delivery, determined by your company: CSARS CSARs function similarly to SSARs. HOW DO I EXERCISE A CASH-SETTLED SAR? HOW AND WHEN DO I RECEIVE THE PROCEEDS OF MY CASH-SETTLED SARS EXERCISES?

Please discuss all tax considerations with your tax advisor. WHO DO I CALL IF I HAVE QUESTIONS ABOUT MY SARS? See All Understanding Your Stock Plan Awards. Recommended Links Managing Your Stock Options Online Glossary of Stock Plan Awards Getting Started with StockPlan Connect.