How to Buy a $5m Business & Hire an Operator to Run It
Acquiring Minds
**Phantom Equity vs True Equity (Exec Compensation Structure) **
Phantom equity is a contractual agreement between a company and an employee, entitling the employee to receive profits based on a predetermined percentage without actually granting ownership in the business. This form of equity allows for flexibility without the legal complexities associated with true equity, such as registering as a security. Phantom equity outlines terms like vesting periods and entitlements, and while it provides similar financial benefits, it may have different tax implications compared to traditional equity.
00:00
Transcript
Play full episode
Remember Everything You Learn from Podcasts
Save insights instantly, chat with episodes, and build lasting knowledge - all powered by AI.
