Questions

Hi. We are an early-stage Social Media based start-up incorporated as LLC and have beta ready. In order to go to next level, we need to get some key hires on board. We are contemplating how to give them equity based compensation and if Phantom/SAR based equity makes sense ? Please advise.

A phantom equity grant essentially gives the recipient the right to receive a cash bonus equivalent to what they would have received if they held a profit interest. However, the holder is not a member of the LLC and has no equity interest.


Answered 10 years ago

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