Accounting & impact of phantom stock / virtual share plan
Hello, I have a question on phantom stock:
What is the impact of phantom stock options vs. real stock options?
Let's say 10% phantom stock. There will be an EBITDA impact as there needs to be a provision for the phantom stock.
Will this provision increase in line with valuation uplift each year? So ultimately the provision may end up impacting the EBITDA by more than 10% if the company is growing fast, leading to a dilution of shareholders of over 10%. This would mean that it is less favourable for the shareholders than giving out normal options.
It would be great if someone could help me understand the exact dynamics.
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