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Phantom stock
Upside without downside

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.
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