A. The value of phantom share units is measured on the basis of the value of the company`s workforce. The value can be determined by an explicit written formula or determined by assessment. The approach used for the evaluation should take into account adjustments deemed appropriate by the parties. For example, a company could exclude profits or losses related to the activity or sale of certain business activities. Other adjustments that could be considered include sub-shares of shareholder investments made during the plan, as well as access to dividends potentially paid to shareholders during this period, as well as the amount of accumulated deferred compensation attributable to the phantom shares themselves. It should be noted that the value of Phantom Stock Units varies from year to year when the value of the business changes. If z.B. has a bad year, the value of its stock and the value of the Phantom share decrease. Therefore, regardless of the timing of the vesting, there is no locked value inherent in the phantom stick. In general, only selected employees are selected to get Phantom Stock, for example.B. Phantom share plans are deferred compensation agreements that distinguish employees based on the value of the company`s stock.

The price, since it is not a real stock, does not give employees property rights over the company. Has. Phantom share plans are deferred compensation plans and, as such, plans must be designed and documented to meet Section 409A requirements. If the income tax plan is in accordance with paragraph 409A, the deferred compensation attributable to Phantom Stock is only subject to employee income tax when it is actually paid to and received by management. At the time of payment taxation, the company may deduct an equivalent amount (subject to general restrictions on the reasonable and non-excessive amount). Unlike actual shares, which can benefit from favourable taxation on capital gains from an assignment, the value of the phantom stock paid to the employee is taxable as normal income. Businesses should ensure that Section 409A is followed before a plan takes effect to ensure that these tax results occur. A violation of the rules could result in the imposition and imposition of income-related penalties before the worker is effectively received.

Ghost stocks can, but generally not, pay dividends.