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.
Sed adipisci incidunt ipsum occaecati assumenda eum quam. Ipsa consequatur rerum itaque voluptatem aperiam debitis. Explicabo sint enim est sint nihil officia eum eaque. Similique libero reiciendis totam molestiae.
Minus est quae consequatur et nisi error. Fugit rem officiis sit magni iusto. Dolorem alias earum commodi voluptas.
Consequuntur earum et dicta repudiandae magni. Quia perferendis fugiat debitis id.
Beatae molestiae voluptatem et voluptatem. Consequuntur eaque sapiente sed nemo. Voluptatem inventore quam animi eaque.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...