Definition
Virtual Equity refers to non-traditional forms of equity compensation, such as phantom stock or stock appreciation rights, which provide benefits based on company performance without conveying actual stock ownership.
Frequently asked questions
What is the difference between equity and phantom equity?
Equity provides actual ownership in the company, while phantom equity offers benefits tied to the company`s value without actual ownership.
What is the difference between phantom stock and stock appreciation rights?
Phantom stock gives the value of company shares without actual ownership, while stock appreciation rights provide the right to cash or stock based on the increase in the company`s stock value.
What is the meaning of phantom stock?
Phantom stock is a type of compensation where employees get benefits linked to the company’s stock performance without actually owning the stock.