Document background
The Phantom Stock Award Agreement is utilized by Malaysian companies seeking to provide long-term incentive compensation to key employees without diluting actual company ownership. This document becomes relevant when organizations want to align employee interests with company performance while maintaining existing shareholding structures. The agreement typically includes detailed provisions about phantom stock units, their valuation, vesting schedules, and payment terms, all structured within the framework of Malaysian corporate, employment, and tax laws. It serves as a crucial tool for talent retention and motivation, particularly in private companies or subsidiaries where actual share transfers might not be feasible or desirable. The document must comply with Malaysian regulatory requirements, including the Capital Markets and Services Act 2007 and the Employment Act 1955.
