What is the value of these phantom units?

As of the date of the Distribution Event, the Phantom Unit Value shall be equal to the Net Equity Value divided by 10,000. A Phantom Unit shall be a bookkeeping credit equal in value to the Phantom Unit Value at the time of grant.

What are phantom values?

Phantom Value means, with respect to a SpinCo Phantom Unit, the product of (a) the Implied SpinCo Common Unit Value multiplied by (b) the number of SpinCo Common Units underlying such SpinCo Phantom Unit.

What are phantom shares worth?

Phantom stock is an employee benefit where selected employees receive benefits of stock ownership without the company giving them actual stock. It is worth money just like real stock, and its value rises and falls with the company’s actual stock (or what the company is valued at, if it’s not a publicly traded company).

How are phantom stock plans calculated?

The answer involves two variables: (a) the presumed value of the company, and (b) the number of shares to be used in the plan. Once these two answers are known, the phantom share price is calculated as the former (the value) divided by the latter (the number of shares).

What is the meaning of phantom shares?

Definition and Example of Phantom Stock

Phantom stock is a form of employee compensation that gives employees access to stock ownership without actually owning the stock.

Do you pay taxes on phantom stock?

As the phantom stock units become vested, the value of the phantom stock units is includible as wages subject to FICA taxes. This is the case even though the amounts are not subject to income tax until actually paid to the employee.

Does phantom stock pay dividends?

Dividends are periodic payments made to shareholders from profits. Because participants in phantom stock plan are not shareholders, they are not entitled to dividends per se.

What is another name for phantom stock?

synthetic equity

Phantom stock, also known as synthetic equity, has no inherent requirements or restrictions regarding its use, allowing the organization to use it however it chooses.