top of page

Lexicon

< Back

Phantom stock

Upside without downside

Phantom stock

Earn as if you were a shareholder, but without the risk

Phantom stock is a form of variable remuneration where the management does not actually own stock, but receives a variable remuneration in function of the evolution of the value of stock between entry and exit.

Phantom stock does not require any investment by the manager. It is risk-exempt, as there is only upside in the game for the manager.

This structure is easy to implement, but entails strong tax disadvantages if the tax treatment differs strongly between income tax (in excess of 50% + social security contributions) and capital gains tax (0% or 33%, as the case may be), as is the case in Belgium.

Stay connected. Learn from our experts. Ask.

MBO.law

Address

Bd. Louis Schmidtlaan 29

1040 Brussels

and

Oudeleeuwenrui 29

2000 Antwerp - Belgium

Tel

+32 478 639 206

Powered by:

© David Ryckaert - 2022. All original content is subject to copyright and must not be reproduced without our express prior written permission.

Privacy policy

Select all appicable optons:

Thanks for reaching out!

bottom of page