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Phantom Stock Award
(redirected from Phantom Stock)

   Also found in: Wikipedia 0.01 sec.
Phantom Stock Award
A type of incentive grant in which the recipient is not issued actual shares of stock on the grant date but receives an account credited with a certain number of hypothetical shares. The value of the account increases over time based on the appreciation of the stock price and the crediting of phantom dividends. Payout may be settled in cash or stock.

Phantom Stock Award
A plan to compensate senior management of a publicly-traded company in which the company grants an employee a "hypothetical" stock. That is, the company gives the employee the benefits of owning stock in the company without actually giving him/her stock. The phantom stock increases or decreases in price and pays dividends as if it were real. Eventually, the phantom stock is settled and cash is distributed to the employee. See also: Stock option.


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Certain equity-based compensation arrangements, including stock appreciation rights, phantom stock and restricted stock units.
It can also be provided in the form of virtual ownership which is conveyed through stock appreciation rights, profit sharing or phantom stock.
Equity - stock grants, options and equity-like phantom stock - is a powerful way for smaller companies to entice people at all levels.
 
 
 
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