viiteosaketta

A viiteosake is a term used in Finnish corporate law. It translates roughly to "reference share" or "phantom share." It is not a true share of ownership in the company. Instead, it is a contractual right that entitles the holder to a cash payment, the amount of which is tied to the performance or value of the company's actual shares.

These instruments are often used as a form of incentive compensation for key employees or executives. The value of a viiteosake typically fluctuates in line with the company's share price, but without granting the holder any voting rights or the right to participate in dividends that are distributed to actual shareholders. The specific terms and conditions of a viiteosake are defined in a contract between the company and the recipient.

The purpose of a viiteosake is to align the interests of management with those of the shareholders. By linking their compensation to the company's share performance, it encourages executives to work towards increasing shareholder value. The payout for a viiteosake is usually made in cash upon the occurrence of certain events, such as the sale of the company, a predetermined vesting period, or reaching specific performance targets. It is important to distinguish viiteosakkeet from actual shares, as they do not confer ownership or control over the company.