Phantom Stock Plan Template

State:
Multi-State
Control #:
US-CC-24-258
Format:
Word; 
Rich Text
Instant download

Description

The Phantom Stock Plan template is designed to facilitate the granting of phantom units to eligible employees, mainly senior management, which represent a future payment based on the value of common stock without conferring equity ownership. The plan is administered by a committee, and all employees of the company or its affiliates can be considered for awards regardless of their service duration. Phantom units vest and are payable at certain events like retirement or upon the completion of a specified vesting period, which can extend up to five years. The payment amount at vesting equals the market value of the common stock at that time, along with any dividend equivalents accrued during the vesting period. If an employee's service is terminated for reasons other than death, disability, or retirement, the units are forfeited. The plan allows for the conversion of units into interest-bearing equivalents during the vesting period. It's also possible for the committee to grant additional phantom units to participants who exchange restricted stock. This form is particularly useful for attorneys, partners, owners, associates, paralegals, and legal assistants who need to draft or manage employee compensation agreements, ensuring compliance with legal standards while providing a structured incentive plan.
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Phantom Stock Plan Template