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SEC Form 4UNITED STATES SECURITIES AND EXCHANGE COMMISSIONER 4Washington, D.C. 20549Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).OMB
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How to fill out phantom stock units are

01
Determine the number of phantom stock units to be issued.
02
Set a specific valuation method to calculate the value of the phantom stock units.
03
Create a phantom stock agreement that outlines the terms and conditions of the units.
04
Grant the phantom stock units to eligible participants, usually key employees.
05
Communicate to the participants the benefits and rights associated with the phantom stock units.
06
Track the performance of the phantom stock units based on the valuation method chosen.
07
Determine the payout or settlement amount for participants based on the performance of the units.
08
Execute the settlement by either issuing cash or company stock equivalent to the value of the units.
09
Keep accurate records of the phantom stock units and their transactions for accounting purposes.

Who needs phantom stock units are?

01
Phantom stock units are typically used by privately held companies that want to provide a form of equity-based compensation to key employees without actually issuing company stock.
02
They are also commonly used in start-up companies that may not have the financial resources to offer traditional stock options or restricted stock units (RSUs).
03
Phantom stock units are beneficial for companies that want to align the interests of their employees with the company's performance and provide a potential financial reward based on the company's success.
04
Additionally, phantom stock units can be used to incentivize and retain key employees, as the payout or settlement is usually contingent upon the employee meeting certain performance or tenure requirements.
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Phantom stock units are a form of employee compensation that gives employees a stake in the company's performance without actually owning stock.
Employers who offer phantom stock units as part of employee compensation are required to report them.
Phantom stock units are typically filled out by employers through their HR or finance departments.
The purpose of phantom stock units is to incentivize employees to help increase the company's value and performance.
Information such as the number of phantom stock units granted, vesting schedule, and any other terms of the agreement must be reported.
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