Phantom Stock Award

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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.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
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Phantom stock plans are subject to Internal Revenue Code section 409A and its regulations.
Phantom stock plans. These plans usually feature awards based on hypothetical shares of company stock.
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It is interesting to note who is participating in these programs, the general levels of participation and the structural vehicles that are most commonly employed (i.e., stock options, phantom stock plans and so forth).
But offering multiple retirement plans -- and in some cases; phantom stock plans -- shows they're rising to the challenge.
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