Know About Phantom Stock Plan | Vega-Hr

Vega Hr22 Jun, 2022Business

A phantom stock plan is an employee benefit plan that gives selected employees (specially the senior management) many of the benefits of stock ownership without actually giving them any company stock. This is also called phantom shares, simulated stock, or shadow stock. Rather than getting physical stock, the employee receives mock stock. Even though it's not real, the Phantom stock is worth money, and its value increases and decreases just like a normal stock. Employees get profit gained from a phantom stock plan after the defined time is completed.