Instead, they've created a legal device called stock appreciation rights (SARs), a kind
of phantom stock that can be bought through payroll deductions and that pays off, according to a formula, when the employee retires or if the company is sold.
Not exact matches
One wrinkle is that an employee would need to receive more
phantom stock relative to direct ownership to get the same amount
of equity compensation because they are not receiving the underlying value
of the
stock.
Marion McGovern, CEO
of M 2 Inc., an $ 8 - million broker
of management consultants in San Francisco, has a
phantom -
stock plan — and is considering issuing
phantom stock more selectively.
Good luck deciphering the chapter on valuing options, but the sections on private companies and on
phantom stock should have plenty
of appeal.
«The majority
of private companies can accomplish most or all
of their important goals by forgoing options entirely and instead making use
of a
phantom -
stock technique,» says Jim Scannella, a principal in Arthur Andersen's human - capital - services group.
You could also combine a
phantom -
stock plan with some type
of stock - option plan.
The Plan permits grants
of the following types
of incentive awards subject to such terms and conditions as the Leadership Development and Compensation Committee shall determine, consistent with the terms
of the Plan: (1)
stock options, including
stock options intended to qualify as ISOs, (2) other
stock - based awards, including in the form
of stock appreciation rights,
phantom stock, restricted
stock, restricted
stock units, performance shares, deferred share units or share - denominated performance units, and (3) cash awards.
The 2008 Plan permits the granting
of incentive
stock options, nonqualified
stock options, shares
of restricted
stock, restricted
stock units,
stock appreciation rights,
phantom stock, performance shares, deferred share units and share - denominated performance units, and other
stock - based awards.
Whether by happy accident or through post-production meddling, a few frames
of the
stock have been overexposed — a
phantom image in a film overrun by ghosts.
Foley Hoag helps clients establish
stock incentive,
phantom stock and other forms
of equity compensation plans, as well as management carve - out plans, bonus plans and deferred compensation arrangements.
Our speakers will discuss the various forms
of deferred employee compensation, including
stock options,
phantom shares, share appreciation rights plans and others together with an analysis
of the corporate and tax implications.
Our tax advisors also provide advice with respect to compensation arrangements involving corporate
stock, including nonqualified and qualified
stock option plans, restricted
stock plans,
phantom stock and
stock appreciation rights, keeping in mind the business, tax and financial reporting consequences
of varying forms
of executive compensation.
Small businesses have many options to provide their employees with meaningful ways to participate in the success
of the small business, including
stock options, rights plans, restricted
stock, long - term incentive plans and
phantom stock plans.
Complex case dealing with ownership
of intellectual property,
phantom stock plan, Incentive bonus, reasonable notice