Document background
The Phantom Unit Agreement serves as a critical instrument for companies operating in Malaysia who wish to provide equity-like incentives to employees without actual share issuance. This document type is particularly valuable for private companies, subsidiaries of multinational corporations, or organizations with restricted share transfer capabilities. It sets out the terms under which phantom units are granted, including vesting schedules, performance conditions, valuation methods, and payment terms, while ensuring compliance with Malaysian regulatory requirements. The agreement is structured to provide similar economic benefits to traditional share-based compensation while maintaining simplicity in administration and avoiding complications related to actual share ownership.
