Document background
The Phantom Equity Agreement serves as a crucial instrument for Indonesian companies seeking to provide performance-linked incentives without diluting actual shareholding. This document is particularly relevant for companies operating under Indonesian law who wish to attract and retain key talent while maintaining their existing corporate structure. The agreement outlines the terms of phantom equity grants, including vesting conditions, valuation methods, and payment triggers, all while ensuring compliance with Indonesian corporate, employment, and tax regulations. It is commonly used by startups, growing companies, and established businesses looking to implement alternative compensation structures. The Phantom Equity Agreement provides a flexible solution that aligns with both Indonesian legal requirements and international best practices in employee incentivization.
