Document background
The Phantom Stock Agreement serves as a strategic tool for companies operating under Austrian law to provide performance-based compensation without diluting actual equity. This document is typically used when companies want to offer long-term incentives to key employees while maintaining existing ownership structures, particularly relevant for private companies, subsidiaries of international corporations, or organizations not wanting to share actual equity. The agreement defines the mechanism for calculating and distributing financial benefits that mirror stock appreciation, including specific provisions for vesting, valuation, and payment triggers. It incorporates necessary elements to comply with Austrian corporate law, tax regulations, and employment legislation, while providing flexibility to adapt to various business contexts and compensation strategies.
