Phantom stock

In a phantom share ( engl. phantom stock ) is a modern variable compensation method, in which the workers are paid according to performance with imaginary securities.

Starting point for all phantom shares is that beneficiaries will not get any real case, but only fictitious shares. These shares represent shares in the imaginary value of a company dar. The company's value is calculated in different ways (eg by the value in the capital market or the discounted cash flow method ). Can use this form of compensation by this method thus also non-listed companies. The shareholders of phantom shares may therefore increase their salary by doing good themselves, which is a huge motivating factor.

Partly also dividends are paid on the phantom shares, to let the employees directly participate in company profits.