Phantom share
In a phantom share (Engl. Phantom stock ) is a modern variable compensation method in which the employees according to performance imaginary securities are allocated. If the phantom shares increase in value, the employees can finally have them paid out.
The starting point for all phantom shares is that the beneficiaries do not receive any real, but only fictitious shares . These stocks represent imaginary shares in the value of a company. The value of the company is calculated in various ways (for example according to the value on the capital market or according to the discounted cash flow method). Using this method, non- listed companies can also use this form of remuneration. The phantom shareholders should be motivated to increase their salary through good work themselves.
In some cases, dividends are also paid out on the phantom shares so that employees can participate directly in the company's profits.