Phantom stock is a contractual agreement between a corporation and recipients of phantom shares that bestow upon the grantee the right to a cash payment at a designated time or in association with a designated event in the future, which payment is to be in an amount tied to the market value of an equivalent number of shares of the corporation's stock.[1] Thus, the amount of the payout will increase as the stock price rises, and decrease if the stock falls, but without the recipient (grantee) ...
