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What's the Book on Phantom Stock?

CFO Bookshelf

CHAPTER

The Best of Both Worlds

How formal or how informal is that? Is that an appropriate question? That's a good question. And it's important, kind of as a question of thinking through the incentive process... What kind award youare going to give if youre,. if youare an owner, if you are an employer? i would tend to say it should be a formal arrangement in most cases. But here's the exception: If you want to have an informal arrangement, with a trusted employee who has been around for 20 years - there's no problem with having an informal arrangement. Now, as to the complicated language that you experience your profit in youra phantom stock award back in the day, thats our

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