Kwantor vs SAR
Better because it's real equity that entitles the holder to economic rights beyond just upside potential, with custom trading plans and seamless administration through Kwantor's equity management platform Teller.
- Synthetic only
- No liquidation
- Not tradable
- Suboptimal incentives
- Real equity
- Liquid rights
- Tradable
- Optimal incentives
What is a SAR and when is it used?
A Stock Appreciation Right (SAR) grants a cash or share bonus equal to the growth in value of a defined pool of shares. Companies use it when they want to share upside without issuing actual equity or touching the cap table. SAR agreements are common for mature startups or international teams that need a simple bonus-style incentive.
What are the benefits of a SAR?
SARs avoid dilution and can be settled in cash, making approvals simpler for founders and investors. Participants can benefit from appreciation without having to purchase shares upfront. The structure can also be tailored with specific performance triggers or vesting to reinforce retention goals.
How does Kwantor compare?
Kwantor delivers real equity participation instead of a derivative promise, but similar to a SAR, without voting dilution. Our primary equity management tool Teller automates onboarding and documentation for a robust foundation so teams can offer ownership globally with minimal manual work. Employees see their position in a single dashboard rather than waiting for occasional payout statements.
What are the benefits of Kwantor compared to a SAR?
Kwantor's participation structure provides participants with a superior risk-return profile with upside potential beyond a one-time bonus payout. When your company grows, your contributors profit from that growth with you, allowing them to participate in both dividend distributions and liquidation proceeds. Since participants do not receive a cash bonus, there is no immediate cash burden on the company. Furthermore, Kwantor's participation plan supports tradability of Profit Share Tokens, further aligning interests between the company and its contributors.