Document background
The Phantom Stock Agreement is utilized by Belgian companies seeking to provide equity-based incentives to key employees without diluting actual shareholding. This document is particularly relevant when companies want to retain and motivate valuable employees while maintaining existing ownership structures. The agreement typically includes detailed provisions on grant terms, vesting schedules, valuation methodologies, and payment conditions, all structured to comply with Belgian corporate, employment, and tax laws. It's especially useful for private companies, subsidiaries of foreign corporations, or organizations where direct equity participation is not feasible or desired. The Phantom Stock Agreement must carefully navigate Belgian regulatory requirements, including social security implications and corporate governance standards.
