The phantom stock plan: Sharing a rise in stock value with your employee without diluting equity
Business Advice and Financial Planning
, December 2014
The opportunity to defer compensation enables many types of programs and techniques that benefit an employee as well as a company. There are two basic types of stock-oriented deferred compensation plans—those referencing “phantom stock” and those referencing stock appreciation rights (often referred to as “SARs”). This article provides a brief introduction to the basic elements, and advantages and disadvantages, of a phantom stock plan.
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