Document background
The Phantom Stock Option Agreement is a strategic document used by companies operating under Irish jurisdiction to provide employees with equity-like incentives without diluting actual shareholding. This arrangement is particularly valuable for private companies, subsidiaries of multinational corporations, or organizations seeking to maintain specific shareholding structures while still offering competitive compensation packages. The document comprehensively details the synthetic equity program, including grant terms, vesting conditions, valuation methods, exercise procedures, and payment mechanisms. It ensures compliance with Irish employment law, tax regulations, and corporate governance requirements while protecting both employer and employee interests. The agreement is commonly used for talent retention, performance motivation, and aligning employee interests with company success, particularly in scenarios where traditional stock options may not be practical or desired.
