Data creation platform business Walr has introduced an employee phantom stock plan, or shadow options scheme, for its 70 employees.
The scheme is available to all employees, no matter their seniority, and will allow them to participate in the business’ future success in the form of financial reward, by simulating stock ownership.
A phantom stock plan awards the employee a unit measured by the value of a share of a business’ common stock, but does not confer equity ownership in the company.
Upon joining the firm, which will retrospectively be giving shadow options to workers that have already started, all members of staff will receive a number of options. If the business is sold in an exit event in the the future, a bonus would be paid to employees based on the value of the options at the time.
Employees can also choose to take future bonuses as cash, or as an equivalent value in shadow options based on the value of the firm at the time of new issue. This allows those who would prefer the bonus immediately to receive it, while others who want to be invested in the business’ journey can wait and be rewarded in the future.
According to the firm, the launch of the plan demonstrates its dedication to two of its core values – ‘Empowered to Act Like Owners’ and ‘Celebrate as a Team’.
Patrick Fraser, chief financial officer at Walr, said: “We wanted a scheme that aligns with our values and made all employees feel part of the team, driving the company forward. If the company grows, the value of the employee options grow. If we have success, we all benefit together. This is absolutely fundamental to Walr.”
Walr recently received accreditation as a Great Place to Work, a certification based on anonymous surveys of employee experience.