What phantom shares are—and why they do not constitute real equity.
Key legal rights: no dividends, no voting, no ownership.
How vesting, forfeiture, and continued employment conditions operate.
Taxation and potential disclosure requirements for cash-settled awards.
Optimize Your Employee Incentive Design
Geronimo Law helps employers craft compliant incentive structures using phantom stock, equity-linked awards, and executive compensation tools. Share your concerns for expert analysis.
This section addresses common concerns raised by businesses, legal teams, and finance professionals looking for clarity on complex issues. If you’re seeking practical answers or a better understanding of key concepts, you’ll find helpful insights here.
Do phantom shares operate like stock options or RSUs?
No. Phantom shares are purely cash-settled and do not convert into stock. They track stock value but do not result in ownership.
Who typically receives phantom stock grants?
Employees or executives designated under the employer’s incentive plan, as specified in the phantom stock agreement.
Can phantom shares be revoked or withheld?
Yes. Unvested shares are forfeited upon resignation or termination for cause, and vested shares may still be withheld for violations of plan terms or policies.
.webp)
