Asked by Meliza Acosta on Jun 15, 2024
Verified
A phantom stock plan ties an employee's bonus to the performance of company stock,but that employee never actually receives any stock.
Phantom Stock Plan
A type of employee benefit plan that gives selected employees many of the benefits of stock ownership without giving them any company stock, often tied to the performance or value of the company's stock.
Company Stock
Shares of ownership in a corporation, representing a claim on part of the corporation's assets and earnings.
- Understand the mechanisms of phantom stock plans and share appreciation rights as alternative compensation methods.
Verified Answer
MZ
Migle ZUkauskaiteJun 16, 2024
Final Answer :
True
Explanation :
A phantom stock plan is a type of incentive plan in which an employee's bonus is tied to the performance of a company's stock, but the employee does not actually receive any stock. Instead, they receive a cash payment based on the change in the stock price over a certain period of time.
Learning Objectives
- Understand the mechanisms of phantom stock plans and share appreciation rights as alternative compensation methods.
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