Phantom stock arrangement

Phantom stock arrangement is an employee incentive plan. A technique in which a company gives its employees the benefits that come with owning stock, including dividends, but does not actually give them stock in the company.

Definition

According to the HRBoK Guide,

Phantom stock arrangement. An employee incentive plan. A technique in which a company gives its employees the benefits that come with owning stock, including dividends, but does not actually give them stock in the company.