Phantom stock is a contractual agreement between a corporation and recipients of phantom shares that bestow upon the grantee the right to a cash payment at a designated time or in association with a designated event in the future, which payment is to be in an amount tied to the market value of an equivalent number of shares of the corporation's stock¹. 

(1) Phantom stock - Wikipedia. https://en.wikipedia.org/wiki/Phantom_stock.

(2) Phantom Stock Plan: What It Is, How It Works, 2 Types - Investopedia. https://www.investopedia.com/terms/p/phantomstock.asp.

(3) What Is Phantom Stock? - The Balance. https://www.thebalancemoney.com/how-phantom-stock-works-4159362.