Phantom Stock Plans vs. SARs?

by a searcher from University of Illinois at Chicago

1 year ago

Any thoughts on deciding between issuing Phantom Stock or SARs to employees w/o issuing actual shares? Leaning towards the Phantom Stock route, but I'm interested in anyone's experience with rolling out either.

1 like
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10 comments

searcher from Dalhousie University

In reviewing the comments, there is a ton of great information in this post (I'll be referring to it in future). One thing to consider is the role of the employees, their capacity and long term goals. I think SARs reduce the financial risk to the employee and provide more win-win situations.

1 year ago | like reply | 1 like

investor from Stanford University

Hi, Griffin. I don’t have experience with phantom stock. However, I did use a SAR plan to recruit an employee who was way out of my league. He knocked it out of the park so the SARs converted to actual equity 5 years later. Win-win. Feel free to DM me if you’d like to chat more.

1 year ago | like reply | 1 like

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