Definition of phantom stock

Definition

A phantom stock award is a type of phantom equity that entitles the recipient to a payment equal to the value of a share of the company’s stock, upon the occurrence of certain events.

Related terms

More from The Holloway Guide to Equity Compensation

How Equity Is Granted β€Ί Less Common Types of Equity

​Definition​ Stock appreciation rights (SARs) are a type of phantom equity that gives the recipient the right to receive a payment calculated by reference to the appreciation in the equity of the company.

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