23
May
Phantom Stock Plans: Risks and Rewards
posted by: Ryan Solomon | category : Blog,Contracts and Commercial Litigation,Corporate Governance Disputes,Employment Litigation,Risk Management and Litigation Avoidance | comments : 0 Comment
Stock options are a popular way for emerging companies to provide incentive pay to employees. For some companies, however, stock option plans may not be feasible or may present tax or corporate difficulties that render them problematic. For these companies, a phantom stock plan may be an attractive alternative. Generally, a phantom stock plan is an agreement whereby a company grants (or sells) to certain employees a contract right to fictional shares of stock (“phantom stock”) and agrees to pay the ...