What was the weighted-average exercise price of SARs that were exercised by Caption By Hyatt during 2024?
Caption_By_Hyatt Franchise · 2025 FDDAnswer from 2025 FDD Document
follows:
| Year Ended December 31, | ||||||||
|---|---|---|---|---|---|---|---|---|
| 2024 | 2023 | 2022 | ||||||
| SARs | $ | 1 | $ | 1 | $ | — | ||
| RSUs | 7 | 5 | 5 | |||||
| PSUs | 1 | 2 | 1 | |||||
| Total | $ | 9 | $ | 8 | $ | 6 |
SARs—A summary of SAR activity is presented below:
| SARs | Weighted-average exercise price | Weighted-average remaining contractual term |
|---|
Source: Item 21 — Financial Statements (FDD pages 84–85)
What This Means (2025 FDD)
According to Caption By Hyatt's 2025 Franchise Disclosure Document, the weighted-average exercise price of Stock Appreciation Rights (SARs) that were exercised during the year ended December 31, 2024, was $55.19. This figure reflects the average price at which holders of these rights could purchase Caption By Hyatt's stock when they chose to exercise those rights.
SARs are a form of stock-based compensation, allowing employees to benefit from the appreciation of the company's stock price over time. When an employee exercises a SAR, they receive the difference between the market value of the stock at the time of exercise and the exercise price set at the grant date. The weighted-average exercise price provides insight into the financial terms of these compensation arrangements.
For prospective franchisees, understanding the company's stock-based compensation practices can offer a glimpse into its overall financial health and employee incentives. While franchisees are not directly involved in these stock-based compensation plans, they can infer the company's commitment to aligning employee interests with the company's performance. A lower exercise price, as indicated here, could suggest that employees have a greater potential to benefit from the appreciation of the stock, potentially boosting morale and productivity, which could indirectly benefit the franchise system.