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Im Erin hall an attorney in Minnesota you can learn more about me at Aaron hall com today Im talking about phantom stock plans what is a phantom stock plan its essentially a contract where the owner of it or the beneficiary of it can get a buyout of the stock plan at a later date depending on the value of the company at that time typically the company is valued through a independent professional appraisal service so there is some cost associated with that why would people want to use a phantom stock plan well its typically a way for a business owner to give some ownership interest to an employee without actually transferring real ownership now sometimes that works the employees say hey this is great I wasnt going to get anything but my wages now Im going to get actual value of the company upon the sale of these interests maybe its and you might say well what kind of sale maybe its an acquisition of the company maybe its closure of the company maybe there are other time tables
