Phantom Stock Options are becoming increasingly popular as they
enable companies to share a portion of their profits or appreciated
valuation, thereby incentivising and retaining employees in such a
manner that does not result in a dilution of the shareholding of
such companies.
Employees are critical to the growth and success of any
organisation. The recent times have witnessed a start-up deluge and
booming e-commerce which, coupled with increased opportunities and
prevailing competition, have resulted in higher levels of
attrition. This has necessitated companies to offer to their
employees, particularly senior and key employees, attractive
remuneration packages and incentives so as to retain the employees
in the long run. These incentives and benefits include employee
stock options and stock purchase plans, stock appreciation rights,
other general benefits, retirement benefits etc.
