A benefit plan for company employees that gives the employees benefits that would come from holding company stock, without actually giving any stock to these employees. The employees would receive benefits if the stock performed well over a certain amount of time. This is a way for companies to provide a bonus and incentive for employees, without granting them any of the specific benefits that would come from actually being a shareholder. The rules and payout arrangements are similar to that of a deferred compensation plan.

Copyright©2009 by InvestorWords.com. ALL RIGHTS RESERVED.

Reproduction of all or part of this glossary and/or this page, in any format, without written consent is prohibited. If you have questions about this dictionary please feel free to contact us feedback\@\investorguide.com