Which statement best explains a phantom stock plan?
A) Although their bonus is tied to the performance of company stock,the employees never receive any stock.
B) Rewards are based on the stock performance of client firms.
C) Employees are awarded stock at no cost to themselves.
D) Employees can purchase stock at a fixed price within a set period of time.

Question

Quizplus · Accepted Answer

A phantom stock plan is a type of incentive plan where employees are awarded a cash bonus that is tied to the performance of company stock, without actually being given any ownership of the stock.

Which Statement Best Explains a Phantom Stock Plan