Document background
The Phantom Stock Agreement serves as a critical instrument for companies seeking to offer long-term incentives to key employees without diluting actual equity ownership. This document, structured under Irish law, creates a synthetic equity arrangement where participants receive units that mirror the economic benefits of actual stock ownership. The agreement is particularly valuable for private companies, family-owned businesses, or organizations with restricted ownership structures. The Phantom Stock Agreement typically includes detailed provisions for grant terms, vesting schedules, valuation methods, payment conditions, and tax treatment, all tailored to comply with Irish corporate, employment, and tax regulations. It's commonly used for executive compensation, employee retention, and succession planning, providing a flexible alternative to traditional equity-based incentives while maintaining existing ownership structures.
