WP90X – Phantom Stock Plans: Designing Effective Incentive Strategies for Private Companies
Thursday, March 13, 2025 @ 8:00 AM PT
Details
Phantom Stock plans offer private companies a powerful tool to attract, retain and reward key executives without diluting ownership – but designing these plans effectively requires careful structuring.
This session will explore different Phantom Stock and synthetic equity plans, how they work and how they can be designed to accomplish the client’s objectives. We will cover:
- Key aspects of Full Value Unit (FVU) and Stock Appreciation Rights (SAR) plans
- How awards are granted over time
- How to analyze the desired financial benefit for both the plan participants and ownership group
- How life insurance can play a crucial role in funding and managing the liabilities associated with phantom stock arrangements to provide liquidity for future payouts, mitigate financial risk and enhance plan sustainability
- How to structure these long-term incentive plans (LTIP), review key tax and accounting considerations, as well as define implementation strategies to help business owners create compelling LTIPs that align executives with company growth.
What:
WP90X – Phantom Stock Plans: Designing Effective Incentive Strategies for Private Companies
When:
Thursday, March 13 at 8:00 am Pacific Time
Where:
Zoom Video Conference
CPE:
One (1) hour of NASBA* CPE or CFP credit will be offered (see below for more information)
Session Overview
- In this 90-minute presentation, Ryan Barradas and Michael Kenneth of WealthPoint with David Whaley of Thompson Hine will provide an overview of various types of synthetic equity plans.
- They will discuss different equity plan options, how they work and what to consider when creating a long-term incentive plan for a business.
- An overview of the flexibility of the plan designs will also be illustrated.
- The presenters will review the different funding strategies to create a “market” for the shares to buy back the synthetic equity from the plan participants.
- Real-life case studies will be shared.
Learning Objectives
- Understand how Phantom Stock and Stock Appreciation Rights (SAR) plans work
- Define differences between the various synthetic equity plans
- Full Value Unit (FVU)
- Stock Appreciation Rights (SAR)
- Provide an overview of the plan document and individual award agreement
- Define the tax impact to the company and plan participant
- Identify funding strategies to ensure the company has the cash necessary to pay out the benefit
Continuing Education Information
- This program qualifies for one hour of NASBA CPE and/or CE credit
- Prerequisites: none
- Advanced preparation: none
- Program level: basic
- NASBA field of study is Specialized Knowledge
- Delivery method: Group Internet Based
- There is no cost for this presentation or to obtain CE and/or CPE credit
- For more information regarding administrative policies such as complaint and refund, please contact Shelley Forman at (602) 559-5389
- WealthPoint, LLC is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: nasbaregistry.org.
- Certificates for CPE and/or CE credit will be provided within 30 days after the webinar
