We tell you what phantom shares are and why they are so important for
Many companies obtain liquidity with these actions in which workers are involved.
The so-called ' phantom shares ' have become fashionable in all types of companies, especially in startups . This incentive plan, commonly known as ' phantom shares ' , has become an interesting instrument for retaining talent .
Through phantom shares , the company is granting the employee, usually those in management positions, economic rights that are equivalent to a fictitious share in the argentina email list 4.8 million contact leads company's capital . In other words, the employee will have economic rights of the company's owners without being listed as the owner.
Become part of the company
Although everything will depend on the conditions agreed between the company and the worker , both parties will surely reach an agreement whereby, if the proposed requirements are met, in a period of liquidity, the company will make a financial payment to the worker equivalent to x phantom shares.
In this way, this tool serves, to a large extent, to retain talent within the company and to make the employee feel part of the company . He is linked to it by a fictitious bond, but with a completely real effect, insofar as he benefits from the economic rights of the owners.
When making these rights effective, the company must value the company's assets at a specific amount, which must be included in the agreement reached with the employees. In doing so, we will seek to maintain a balance in the participation of the employees holding phantom shares in the event of possible changes in the share capital.
Let us remember that, for example, the distribution of dividends and other economic and political rights depend on the percentage of participation of the partners in the company. This is why the holders of real shares or participations have the right to participate preferentially in a capital increase. Something similar must be done to defend the interests of the holders of phantom shares .
If, for example, it is decided to increase the company's share capital, it can be agreed that the employees' rights will be increased by the same percentage. Thus, the employee will benefit from the same economic share even if the company's managers decide to increase the capital in any round of financing.
Non-transferable right
However, phantom shares are usually granted as a personal and non-transferable right of the employee. In fact, contracts of this type generally state that the employee cannot transfer these phantom shares to a third party .
What the employee can do is sell these shares back to the company in exchange for an amount that will have been previously set by contract. But this can only be done after a certain period of permanence has elapsed.
Advantages of phantom shares
Phantom shares are mainly used to motivate and incentivize employees and collaborators of the company. Generally, when someone works in a company, they want it to function and grow, something that increases if they own this type of shares, since the value of their rights is linked to the evolution of the company. They are an initiative to align the management team with the economic interests of the company.
