Phantom Stock is an executive compensation strategy offered to Key employees with the value of future compensation aligned with the growth and profitability of your Company –  without diluting shareholders.  It’s a way to use “Synthetic Equity” as an incentive plan to attract, retain, and reward your best people.

Granville Group specializes in the design of custom Phantom Stock Plans which allow you to attract and retain these key people with rewards that recognize their importance to your organization.

 

What would be the impact to your business if your key people were to leave, or be recruited by a competitor?

ABC’s of Phantom Stock

 

  • Phantom Stock ≠ Securities
  • Phantom Stock Plans are contracts between the employer and the plan participants (executives) designed to parallel actual ownership of equity
  • Phantom stock is a NQDC arrangement.
  • Unsecured promise not a transfer of property
  • Form of Payment = CASH
  • Value is measured by the Company’s stock on a “per share” basis

Why Phantom Stock?

 

  • Enhance the recruitment and retention of key executives, particularly those with highly desirable skills and knowledge
  • Align the interests of shareholders and key executives, encouraging executives to think more like “owners” with a longer term view of success
  • Share the economic value of your Company with key executives without bringing them on as equity partners or requiring them to invest cash
  • Reward key executives without triggering an immediate taxable event
  • Share the economic value of your Company with key executives while avoiding the risks inherent in having additional shareholders
  • Create “Golden Handcuffs” to incentivize key executives to remain with the Company long-term

Register here to receive a complimentary copy of our white paper on Phantom Stock.