Phantom Stock Plan

AAA

DEFINITION of 'Phantom Stock Plan'

An employee benefit plan that gives selected employees (senior management) many of the benefits of stock ownership without actually giving them any company stock. Sometimes referred to as "shadow stock."

INVESTOPEDIA EXPLAINS 'Phantom Stock Plan'

Rather than getting physical stock, the employee receives "pretend" stock. Even though it's not real, the phantom stock follows the price movement of the company's actual stock, paying out any resulting profits.

RELATED TERMS
  1. Employee Contribution Plan

    A company-sponsored retirement plan where employees may elect ...
  2. Employee Stock Option - ESO

    A stock option granted to specified employees of a company. ESOs ...
  3. Golden Handcuffs

    A collection of financial incentives that are intended to encourage ...
  4. Stock Option

    A privilege, sold by one party to another, that gives the buyer ...
  5. Stock

    A type of security that signifies ownership in a corporation ...
  6. Cash Bonus

    A lump sum of money awarded to an employee, either occasionally ...
Related Articles
  1. Options & Futures

    Haunting Wall Street: The Halloween ...

  2. Bonds & Fixed Income

    Accounting and Valuing Employee Stock ...

  3. Investing

    What's the difference between legal ...

  4. Retirement

    Who is eligible for a Teacher Retirement?

Hot Definitions
  1. Turkey

    Slang for an investment that yields disappointing results or turns out worse than expected. Failed business deals, securities ...
  2. Conduit Issuer

    An organization, usually a government agency, that issues municipal securities to raise capital for revenue-generating projects ...
  3. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  4. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  5. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
  6. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
Trading Center