With a ________,an executive receives units instead of shares of company stock.In the future,the executive receives cash equal to the appreciation of the units owned.
A) nonqualified stock option
B) premium priced option
C) performance achievement plan
D) phantom stock plan
E) restricted stock plan

Question

Quizplus · Accepted Answer

A phantom stock plan is a type of equity-based compensation where an executive receives units that are designed to mimic the value of company shares. The executive does not actually own the shares, but instead receives cash payouts equal to the appreciation in the value of the units. This allows the executive to benefit from the success of the company without actually owning shares, and also avoids some of the drawbacks of traditional stock-based compensation, such as dilution of existing shareholders or the need to exercise options.

With a ________,An Executive Receives Units Instead of Shares of Company