RM2 > Employee Share Schemes > Phantom Share Plan (PSP)

psp.pngPSP: Phantom Share Plan

Phantom Share Plans, (aka Ghost Share Plans or Share Appreciation Rights Schemes), allow employees to benefit from the increase in share value without ever actually becoming shareholders.

PSP: About the Phantom Share Plan

It is essentially a cash bonus scheme with awards based on share value. 

Employees will have the right to a cash sum of money, as determined by the increase in share value over time.

PSP: Benefits of a Phantom Share Plan

  • Links cash bonus awards to share value – this helps to focus participants to work toward established corporate objectives
  • Promotes retention of key employees
  • Motives participants to work beyond short-term goals
  • Current shareholders are not diluted

Please note, under a Phantom Share Plan employees will be subject to income tax and NICs as usual on receipt of their cash bonus. This is not a tax-advantaged arrangement.

PSP: How we can help 

At RM2, we believe in taking a consultative approach to building share plans and finding out precisely what our clients are looking to achieve. This approach helps us to deliver a professional and effective service, helping clients meet their goals and plan for the future. Our highly experienced team is well positioned to guide your company through every stage of the share scheme process, including:

  • Strategic review
  • Plan design
  • Employee communications
  • Plan administration
  • Ongoing support

We have successfully designed, implemented and administered over 700 share plans across a range of sectors, so you can rest assured your plan will be in the best possible hands!

If you would like to find out more about how a Phantom Share Plan can help your business, why not call us directly on 0208 949 5522, book a free consultation using the button above, download our fact sheet or email a member of our team!


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