Demystifying Phantom Equity


Date: 07 / 07 / 17

Publication: ACC Baltimore Newsletter

Pasicolan_Paolo_E_130.jpgPaolo Pasicolan, a lawyer in the firm's Labor, Employment, Benefits & Immigration practice group, wrote an article for the Association of Corporate Counsel Baltimore Chapter's quarterly newsletter on how phantom equity works.

Phantom equity is a colorful term for a simple concept: compensation that rewards key contributors for increasing the value of a company without the immediate issuance (or even any future issuance) of equity securities. Many companies grant phantom equity because it offers many of the risks and rewards of owning the company without most of the hassles of actual ownership. Here is a brief Q&A on how phantom equity works.

To read the full article, click here.