Document background
The Phantom Share Agreement serves as a crucial instrument for companies operating under Irish law who wish to provide equity-based incentives to key employees without diluting actual shareholding. This document type is particularly valuable for private companies, subsidiaries of multinational corporations, or organizations with complex shareholding structures. The agreement outlines the grant of phantom shares, which are synthetic units that track the value of actual company shares and provide equivalent economic benefits. It includes essential provisions regarding vesting schedules, valuation methodologies, payment triggers, and tax implications, all while ensuring compliance with Irish corporate, employment, and tax regulations. The Phantom Share Agreement is commonly used as part of employee retention and incentivization strategies, especially when traditional share options or actual share grants are not practical or desired.
