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 › 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.

🚧incomplete Elaboration needed on what events typically trigger phantom stock. More data on how rare these are? And what is appreciation?

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The Holloway Guide to Equity Compensation
Joshua Levy, Joe Wallin, and over 35 contributors
Over 3 hours and 300 linked resources

Stock options, RSUs, job offers, and taxes—a detailed reference, including hundreds of resources, explained from the ground up and made to be improved over time.