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Phantom Stock Plan Modeler

Mid-size companies face a serious challenge from larger and smaller competitors in attracting top-performers. Larger, publicly-traded companies use full stock grants or stock options, restricted shares or other forms of long-term equity compensation. Smaller companies use innovative, fast-paced cultures and ground-floor IPOs to attract and hold talent. How then do owners of mid-size companies incentivize top-performers to stay put and drive revenue without giving up stock and diluting control? The Phantom Stock Plan.

Phantom Stock Plans give select employees and senior management the benefit of stock ownership though without actual company stock. For an in-depth discussion of these Plans, see our white paper, “The Exquisite Reality of Phantom Stock” on the topic.

For your convenience, we’ve developed the Phantom Stock Modeler to provide you with a better understanding of the potential value and cost of various phantom stock plan designs. This simple-to-use tool walks you through the key steps in designing a plan, allowing you to project the value of your own company, decide how much of the growth and appreciation you’re willing to share with your key executives, and identify those executives and the amount of Phantom Stock designated for each.

The Modeler provides schedules and charts that show the projected value of the Stock granted to each executive, and the financial impact on the company. It’s an interactive tool, and with a minimum of inputs, you’ll access illustrations of basic issues associated with plan design, and expand your thinking on how these plans can meet the strategic and financial goals of your company. So let’s get started on building the long-term incentive compensation plan that’s right for you.

Use this interactive Excel Model to explore the key steps in creating a Phantom Stock Plan for your company, projecting future growth, allocation to key executives, and the financial impact of implementing a plan.