Document background
The Phantom Share Agreement is utilized when companies wish to provide employees with equity-like incentives without diluting actual shareholding or when direct share ownership is impractical due to corporate structure or regulatory constraints. This document type is particularly relevant for Swiss companies, including subsidiaries of international groups, private companies, and family-owned businesses. The Phantom Share Agreement typically includes detailed provisions on grant terms, vesting conditions, valuation methodologies, exercise procedures, and tax implications, all structured to comply with Swiss legal requirements. It serves as a crucial tool for employee retention and alignment of interests while maintaining existing corporate ownership structures. The agreement is especially valuable when real share transfers are complicated by shareholder restrictions, cross-border considerations, or company policy.
