Document background
The Phantom Share Agreement serves as a critical instrument for companies operating in Indonesia who wish to offer equity-like incentives to key employees or consultants without diluting actual shareholding. This document type is particularly valuable for private companies, subsidiaries of foreign corporations, or organizations with restrictions on direct equity distribution. The agreement details the grant of phantom shares, their vesting schedule, valuation methodology, and payment conditions, all while ensuring compliance with Indonesian employment law, tax regulations, and corporate governance requirements. It provides a flexible alternative to traditional share-based compensation, allowing companies to attract and retain talent while maintaining their existing corporate structure.
