phantom stock plan

Phantom stock plan

An incentive scheme that awards management bonuses based on increases in the market price of the company's 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.

phantom stock plan

An incentive plan for a firm's executives in which the executives are offered bonuses based on increases in the market price of the firm's stock. A phantom stock plan is supposed to induce the executives to act in the best interests of the shareholders.
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8226; When a company should consider implementing a phantom stock plan
A phantom stock plan is another form of DCA in which there is a deferred cash benefit but no actual stock ownership.
A phantom stock plan is essentially a special type of deferred bonus arrangement, usually based on the fair market value of the shares of the employer corporation.
As a result, we were able to successfully recruit two established financial advisors from one of the major wirehouses and the Phantom Stock Plan ended up being a pivotal component in our negotiations.
The difference between a phantom stock plan and SARs is that the grantee of a phantom stock unit typically receives, as part of the grant, the full value of a share of stock, while the grantee of a SAP.
7 million pretax charge related to the acceleration of the Company's phantom stock plan.
0 million when compared to 2008 as a result of the aforementioned charges for the Charitable Foundation, accelerated vesting and payout of the phantom stock plan as well as a $1.
Example 2: The facts are the same as in Example 1, except that R grants employees a phantom stock plan (rather than a restricted stock plan).
6 million for termination of a phantom stock plan, and pro-forma income taxes calculated at 40.
9 million and the charge related to the acceleration of the phantom stock plan in the amount of $3.
However, a phantom stock plan, which provides the employee with a payment equal to the value of stock at a given time, is treated as a deferral of compensation under the regulations.
0 million charge for termination of a phantom stock plan, subtraction of one-time tax benefit of $3.