What are phantom stock plans?

A phantom stock plan is a deferred compensation plan that awards the employee a unit measured by the value of a share of a company's common stock, or, in the case of a limited liability company, by the value of an LLC unit. However, unlike actual stock, the award does not confer equity ownership in the company.

What is a phantom stock agreement?

A. A phantom stock plan is a deferred compensation plan that awards the employee a unit measured by the value of a share of a company's common stock, or, in the case of a limited liability company, by the value of an LLC unit. However, unlike actual stock, the award does not confer equity ownership in the company.

How are phantom shares created?

Rather than getting physical stock, the employee receives mock stock. Even though it's not real, the phantom stock follows the price movement of the company's actual stock, paying out any resulting profits.

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Phantom Stock Plan of Hercules...

Bexar Texas Phantom Stock Plan of Hercules, Inc.

Name: Bexar Texas Phantom Stock Plan of Hercules, Inc.
Brand: US Legal Forms
Rating: 4.77 (439 reviews)

Category:

Corporations - Public - Disclosure and Notices

State:

Multi-State

County:

Bexar

Control #:

US-CC-24-258

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Instant download

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This sample form, a detailed Phantom Stock Plan document, is a model for use in corporate matters. The language is easily adapted to fit your specific circumstances. Available in several standard formats.

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Phantom stock is a contractual agreement between a corporation and recipients of phantom shares that bestow upon the grantee the right to a cash payment at a designated time or in association with a designated event in the future, which payment is to be in an amount tied to the market value of an equivalent number of

A phantom stock plan is a deferred compensation plan that awards the employee a unit measured by the value of a share of a company's common stock, or, in the case of a limited liability company, by the value of an LLC unit. However, unlike actual stock, the award does not confer equity ownership in the company.

Phantom stock is not a good idea if the company is planning on issuing them to most or all employees, especially if the shares will be paid out when the employee leaves the company or retires. In that case, phantom shares may be ruled illegal because of the Employee Retirement Income and Security Act (ERISA).

For both phantom stock and SARs, employees are taxed when the right to the benefit is exercised. At that point, the value of the award, minus any consideration paid for it (there usually is none) is taxed as ordinary income to the employee and is deductible by the employer.

The phantom stock becomes a liability that the company must eventually convert to either cash or company stock. In privately held businesses, company stock is rarely an option. employees like these plans as any phantom stock they receive is not taxable until converted into cash by the company.

A. A phantom stock plan is a deferred compensation plan that awards the employee a unit measured by the value of a share of a company's common stock, or, in the case of a limited liability company, by the value of an LLC unit. However, unlike actual stock, the award does not confer equity ownership in the company.

A phantom stock plan is an employee benefit plan that gives selected employees (senior management) many of the benefits of stock ownership without actually giving them any company stock. This type of plan is sometimes referred to as shadow stock. Rather than getting physical stock, the employee receives mock stock.

To the extent that phantom stock is considered a security, private companies generally rely on the exemption from registration under Rule 701 of the Securities Act of 1933, which allows a company to offer securities to employees under a written compensatory plan if: (1) certain disclosure requirements are met and (2)

Rather than getting physical stock, the employee receives mock stock. Even though it's not real, the phantom stock follows the price movement of the company's actual stock, paying out any resulting profits.

5 Tips for Creating a Phantom Stock Plan Understand what you are and aren't offering. Phantom stock is essentially a contract in which you promise to pay cash to an employee once certain conditions are met.Set a proper valuation.Create your shares.Decide how to award stock.Set a reward schedule.

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27, complete list of activity function codes and titles. When complete, the three-volume set will describe the CORE FIA program field data, all of which are measured consistently across the country.Complete list of activity function codes and titles. 28. World premiere in San Antonio, TX: 24 Oct 1960; Los Angeles and New York openings: 26 Oct 1960. These benefits normally include employee compensation in the form of company stock. Flume of Barstow Irrigation Company, Pecos River ______ .. __ . Eratives and is paid from equity accruing to the member. INC. I believed him. I was assigned to Platoon 290, Company.

Bexar Texas Phantom Stock Plan of Hercules, Inc.

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How are phantom shares paid out?

What are phantom stock plans?

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What happens to phantom stock when a company goes public?

What is a phantom stock agreement?

Do employees pay for phantom stock?

Is phantom stock a security?

How are phantom shares created?

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