Blueprint for Wealth with Wayne Zell
Wayne invites entrepreneurs to share their success secrets, challenges, and experiences. He covers crucial topics such as business exit strategies, increasing company value, leadership, business culture, and asset protection.
Phantom Stock Plans Demystified: Benefits, Compliance, and Strategic Use for Businesses
Wayne Zell delves into the intricacies of phantom stock plans, outlining their benefits and long-term incentives for fostering loyalty among employees. He discusses the tax implications and essential characteristics, including financial disclosures and participation rights. The episode covers key aspects such as vesting, performance metrics, and triggering events that determine payouts. Wayne also explains payout structures and the importance of compliance with IRC section 409A. The conversation concludes with compelling reasons to consider using phantom stock plans as a strategic tool for business owners.
Key Points
- Phantom stock plans offer key employees the benefits of stock ownership without actual stock ownership, aligning their interests with the company's success.
- Unlike qualified plans, Phantom stock plans are not subject to ERISA regulations, making them simpler and less costly to implement while still incentivizing long-term loyalty among managers.
- Phantom stock plans must comply with Internal Revenue Code section 409A, and payouts are only taxed when the employee actually receives the benefits, not when they are awarded.
Chapters
| 0:00 | |
| 1:13 | |
| 2:35 | |
| 4:52 | |
| 7:55 | |
| 9:16 |
Transcript
Loading transcript...
- / -