Definitions for "PHANTOM STOCK"
Keywords:  swhen, formula, bonuses, lieu, actual
When a company credits employees as being owners of shares that don't actually exist. He or she is later credited with the difference between what shares were worth when granted versus when they are cashed in
An incentive plan that is long term, in which the participant is given the compensation in cash that is determined by a formula. A full value plan pays the full value. The formula does not have to include the actual price of the stock.
The concept is similar to the phantom stock full value, however the payment is an appreciation or increase in value as determined by the formula. The formula does not have to include the actual price of the stock.