BY: Thomas J. Perrone, CLU, CIC
Employee retention strategies are important and losing a key person isn’t just an inconvenience. When you factor in recruiting, training, lost relationships, and lost revenue, it can cost well into six figures. So, what’s the solution?
Phantom equity or ghost stock! A great tax strategy!
In this video, I break down exactly how phantom equity (also called phantom stock or ghost stock) works — and why it may be the most powerful retention tool available to closely held business owners today.
This video explains the “Phantom Stock Golden Handcuff” plan, a strategy for businesses to retain top talent without giving up equity. Learn how this plan, which involves a written agreement where key employees receive “phantom” shares, can significantly boost staff retention. We detail how the plan works, its benefitsas an employee benefits package, and its tax treatment within human resources strategies.
✅ What you’ll learn:
- What phantom equity actually is — and what it isn’t
- How hypothetical shares are granted, valued, and paid out in cash
- Full Value vs. Appreciation Only — which design is right for your situation
- How taxation works at distribution — for you AND your key employee
- How to informally fund the obligation using tax-efficient financial instruments
- Why this tool protects your ownership, preserves your control, and is. fully deductible
No ownership given up. No ERISA compliance headaches. No complicated legal structure. Just a simple, flexible, written agreement that aligns your key person’s financial future with the growth of your business.
If you’re a business owner with 5 to 50 employees and you rely on key people
to drive your success — this video is for you.
📩 Questions about your specific situation? Email me directly: tperrone@necgginc.com
📞 Call: 203-530-6615
📞Or better yet, I would love to have a meaningful conversation with you of what you are thinking concerning your employees.
Feel free to schedule a spot in my calendar; https://fantastical.app/b5bhcvxwev-lPTY/call-meetings-general
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Your Business Worth 