Planless Phantom Awards

What's new

Phantom awards (Cash Bonus Units) in Carta no longer require an equity plan. Admins can now issue phantom awards without first creating or selecting a plan and the share or unit class is captured directly on the award itself.

Why it matters

Previously, Carta required every phantom award to be associated with an equity plan, even when the award wasn't actually issued from one. These placeholder plans cluttered plan lists, surfaced misleading information in award details, and created friction for LLC and PE-backed companies.

This release removes that requirement entirely.

What changed

• Equity plans are now optional when issuing a phantom award

• Share or unit class is selected directly on the award, independent of plan association

• Dilution is configured separately. A phantom award can be dilutive or non-dilutive regardless of plan association

• Draft creation and XLS imports reflect the new model, with terminology that adapts to your company's entity type

• Award details accurately reflect the actual plan relationship, or the absence of one