Document background
The Phantom Share Agreement is commonly used by Belgian companies seeking to provide long-term incentives to key employees or consultants without diluting actual share capital. This document type is particularly relevant for private companies, subsidiaries of international groups, or organizations where direct share ownership may be impractical or undesirable. The agreement typically includes detailed provisions on phantom share grants, vesting conditions, valuation methods, and payment terms, all structured to comply with Belgian corporate, employment, and tax regulations. It serves as a crucial tool for talent retention and alignment of interests between the company and its key personnel, while avoiding the complexities of actual share transfers and shareholder rights. The document must carefully balance the interests of all parties while ensuring full compliance with Belgian legal requirements regarding synthetic equity instruments.
