phantom stock plan. A long-term benefit plan under which a corporate employee is given units having the same characteristics as the employer’s stock shares. • It is termed a “phantom” plan because the employee does not actually hold any shares but instead holds the right to the value of those shares. — Also termed shadow stock plan. [Cases: Pensions  28.C.J.S. Pensions and Retirement Plans and Benefits §§ 11–15.]

[Blacks Law 8th]