Episode 115

2/16/23

Topic: Should You Incentivize Your Team with Phantom Stock?

Guest: Dan Gordon, PCO Bookkeepers & M&A Specialists, and Donnie Shelton, Triangle Home Services

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In this episode we discuss:

• What phantom stock is and how it can be used to reward employees

• Why it's important to consult an attorney

• How it's different from real stock

• The importance of defining how you will value the business

• Why Donnie tied phantom stock to the company's composite score

• How you can set up an employee's compensation plan including phantom stock

• How dilution plays a role in the arrangement

• Donnie's experience with phantom stock and his views of the cons of this compensation model

• Why Donnie says there are other tools to accomplish similar goals

Resources mentioned:

• PCO Bookkeepers’ Monthly Dashboard Demo Video explaining the Rule of 23 (starts around 2:00 mark)

Notable/Advice: "I am not a phantom stock hater, I would just say to be careful and think about what your true goal is." —Donnie Shelton

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