Document background
This Phantom Share Agreement is designed for use by Australian companies seeking to implement employee incentive arrangements without diluting actual equity ownership. It is particularly valuable for private companies, subsidiaries of international organizations, or entities with restricted share structures. The document provides a comprehensive framework for granting phantom shares that track the value of actual company shares, including detailed provisions for vesting conditions, valuation methodologies, and payment terms. This type of agreement is commonly implemented when traditional equity arrangements are impractical due to corporate structure, shareholder restrictions, or regulatory requirements. The agreement ensures compliance with Australian corporate, employment, and tax laws while offering flexibility in structuring incentive compensation.
