Document background
The Phantom Equity Agreement is designed for companies operating in Qatar who wish to provide equity-like incentives to key employees or consultants without transferring actual ownership stakes. This approach is particularly valuable in the Qatari context where companies may need to maintain specific ownership structures due to local regulations or prefer not to dilute existing shareholding. The document establishes a contractual right to receive cash payments based on the company's value appreciation, effectively simulating share ownership benefits. It includes comprehensive provisions covering grant terms, vesting conditions, valuation methodologies, and payment triggers, all structured to comply with Qatar's legal framework including both civil law and Sharia principles. The agreement is especially useful for companies in regulated sectors, family-owned businesses, or situations where actual share transfer is impractical or undesirable.
