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are you looking for a way to incentivize your employees to perform and share the companys success with them issuing phantom stock might be just the thing youre looking for my name is matt rosetti and im a startup attorney at gordon law group one of my focus areas is helping startup founders create dynamic equity agreements and phantom stocks are a very popular option for compensating employees beyond cash wages so lets talk about what those are and whether a phantom stock plan could work for your business phantom stock plans are an employee benefit plan usually offered to senior management or maybe theyre your early startup employees phantom stock plans give employees some of the benefits of owning stock in the company without actually owning the stock so this means when the company does really well the employees receive extra financial benefits they have an incentive to perform at their best and make sure the company succeeds but its phantom stock instead of real stock this is e