We have a phantom stock compensation plan that is a discretionary deferred compensation plan by management for loan originators. If we have private bankers who are limited to the 10% discretionary bonus amount based on their origination of greater than 10 TRID-applicable mortgage loans, would the stock awards given to them from the phantom stock compensation plan count towards their 10% bonus compensation limit even though those stock awards are deferred and vested over 5 years?
The Phantom Stock Compensation Plan vests at 20% per year over 5 years, and the employee is allowed to access the amount vested each year or contribute it to their 401K and defer taxation on those awards. They get no funds or stock until a year after they are awarded the Phantom Stock.
Appreciate your thoughts, thanks,