A phantom stock plan ties an employee's bonus to the performance of company stock,but that employee never actually receives any stock.

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A phantom stock plan is a type of incentive plan in which an employee's bonus is tied to the performance of a company's stock, but the employee does not actually receive any stock. Instead, they receive a cash payment based on the change in the stock price over a certain period of time.

A Phantom Stock Plan Ties an Employee's Bonus to the Performance