Document background
The Phantom Equity Agreement is a strategic instrument used by Belgian companies to provide key personnel with financial incentives linked to the company's value growth without diluting actual shareholding. This document becomes relevant when companies wish to offer long-term incentives but prefer not to alter their share capital structure or when direct share ownership is impractical due to corporate, regulatory, or tax considerations. The agreement typically includes detailed provisions on phantom unit calculations, trigger events, payment mechanisms, and tax treatment, all structured within the Belgian legal framework. This type of agreement is particularly useful for private companies, subsidiaries of international groups, or organizations with complex shareholding structures where traditional equity participation might be challenging to implement.
